How to Choose the Right Transportation Provider for Your Supply Chain
Choosing the right transportation provider is one of the most important decisions you can make for your supply chain. The wrong partner can cause delays, compliance issues, and financial exposure. The right partner keeps freight moving safely, efficiently, and without disruption. They reduce risk, protect your brand, and deliver consistent service. Below are the essential factors every business should evaluate when selecting a logistics partner.
1. Check Safety Records
Safety should always be the first criteria. Review the provider’s safety performance through FMCSA data or provincial authorities. Compare their results to national averages and pay attention to:
- Accident frequency and severity
- Hours of service violations
- Vehicle and driver inspection history
A provider with a strong safety record demonstrates consistent investment in compliance and risk management, reducing the likelihood of claims, delays, and operational issues.
National Average Out of Service Rating as of 10/31/2025:
Vehicle: 22.26%
Driver: 6.67%
Hazmat: 4.44%
Source: https://safer.fmcsa.dot.gov
2. Evaluate Financial Stability
Transportation is a capital intensive industry. A financially stable carrier can maintain equipment, retain talent, and provide reliable capacity. To assess stability, look at:
- Financial statements if the provider is publicly traded
- Strong liquidity and profitability
- References and proof of long term operational health for private carriers
A stable provider is less likely to miss pickups, experience equipment failures, or reduce capacity unexpectedly.
3. Validate On-boarding Protocols for Brokered Freight
If your provider uses partner carriers, review their onboarding procedures. A compliant process should include:
- Verification of insurance, authority, and licensing
- Detailed safety audits before onboarding
- Ongoing monitoring of compliance status
Stronger programs also include fraud prevention, real time alerts for insurance lapses, and monitoring of safety score changes. These steps protect your freight and reduce liability when brokered carriers are involved.
4. Review Worker Benefits and WSIB Coverage
A provider that treats its employees well often delivers better service. Check for:
- Fair compensation and benefits for drivers
- WSIB coverage or provincial equivalents
- Low turnover and an invested workforce
A supported team leads to safer operations and consistent service for customers.
5. How Customers Can Support Their Transportation Providers
A strong partnership goes both ways. As a customer, you play a key role in helping your transportation provider succeed. Here’s how:
- Pay on Time: Timely payments keep carriers financially stable and able to invest in equipment and staff.
- Provide Accurate Volume Forecasts: Sharing realistic shipment forecasts allows providers to plan capacity and resources effectively. Volumes fluctuate, but keeping your provider informed prevents unexpected costs.
- Set Clear Expectations from the Start: Communicate service requirements, delivery windows, and compliance needs upfront to avoid surprises and delays.
- Ensure Dock Readiness & Appointment Accuracy: Smooth dock processes improve efficiency and significantly reduce detention and dwell time.
Supporting your transportation provider’s success ensures better service continuity and strengthens long-term relationships.
Why These Factors Matter
- Safety protects your cargo and your brand
- Financial strength ensures uninterrupted service
- Strong compliance practices reduce operational risk
- Worker protections reflect responsible business operations
- Shipper and carrier collaboration improves efficiency and lowers total supply chain cost
How XTL Meets These Standards
- Industry-leading safety programs and SmartWay certification
- Decades of sustained growth and recognized as a Top Fleet Employer of Distinction
- Rigorous on-boarding and continuous review of brokered/partner carriers
- Comprehensive benefits and WSIB coverage for employees
- Over 40 years of stable cross-border and domestic transportation expertise
Ready to Strengthen your Supply Chain?
Contact XTL today for a custom solution that always factors in safety, compliance, and reliability.