An ineffective logistics company can lead to a series of problems and risks. Any disruption in the supply chain due to transport issues leads to serious consequences: significant financial losses or even bankruptcy (in the worst-case scenarios). Thus, it becomes critical to select a reliable partner who will manage all the logistical processes.

Here arises a significant challenge and risk—the one associated with choosing an unprofessional company. Such a choice involves many more risks, and in this article, we reveal the most common and important ones.

Financial risks— the greatest risk in terms of resources

Financial risks include a wide range of problems. Among these are rising costs, financial losses, and extra storage charges. A company lacking experience in optimizing logistics processes can incur higher transportation costs, customs fees, and other unforeseen expenses. 

Delivery delays

Supply chain disruptions, reduced sales volume, and contractual penalties are just a few of the risks you take on when opting for an unprofessional logistics company. Moreover, delays or inadequate planning can result in additional storage costs. 

Operational and reputational risks

A frequently associated issue with an unprofessional logistics company is poor transportation conditions. This kind of approach will inevitably cause product damage, leading to expensive replacements, reduced sales, and a drop in profitability. Also, keep in mind the reputational risks linked to low-quality operational procedures. 

Risks to reputation can lead to a weakened brand image and make it harder to draw in new clients in the future. Even for well-established companies, delivery delays, loss of products, and other logistical problems can negatively impact their reputation. Are you prepared to jeopardize the reputation you’ve built up over time?

How can you avoid such risks?

Are you looking for ways to minimize the risks previously discussed? The solution is simple: work solely with experienced logistics providers. A relevant example is PLT Cargo - a company with more than 25 years of experience and a comprehensive understanding of its industry.

We provide our clients with comprehensive logistic services, built on the use of cutting-edge technology. We pride ourselves on our flexibility and commitment to excellence, aiming to dispel any stereotypes about the inefficiencies of outsourced logistics processes!