What To Include in a Logistics Services Contract

When you have an excellent product, people from all over the country–or even the globe–are likely to want to purchase it. Of course, that means you need to find a way to get your product from Point A to Point B in a timely fashion. For many companies, this means hiring another business to provide logistics and transportation services. Anytime you partner with another vendor, it is important to have a services contract. Here’s what yours should include.

Services Provided by the Carrier

A legal contract must outline the services the carrier will provide. It should outline each one by name and describe exactly what specifications were agreed upon by both companies. It should also outline how long the services will take to render and whether specific deadlines are required. Any specialized work should also be included.

Damage Liability and Consequences

Sometimes, accidents happen and things are delayed or damaged during transport. Your contract for logistics services Benicia CA should detail who is liable for any delays or damages and the consequences they create. Consider whether the service provider should handle delays free of charge (as long as they aren’t your fault) and whether the logistics company will be responsible for paying for any replacements that are required because of damage.

Rates and Payment Requirements

Finally, your contract should have a strict and detailed outline of the compensation expectations. Avoid any ambiguity that could make it easier for an unscrupulous company to overcharge you. Consider value-added services like product handling when creating an estimate and overall contract. Remember, being flexible during negotiations could get you a better deal when it’s time to sign on the dotted line.

Be wary of any logistics company (or any other type of business) that refused to offer a written estimate or claims you can work together without a complete contract. When you do have a contract, avoid companies that don’t ask questions or address concerns you have. Diligence ensures you and other businesses work well together to provide your customers the best service possible.

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