Contract Logistics and Warehousing

Gone are the days, when manufacturing companies and businesses used to tackle various aspects of supply chain management (such as storage, shipping etc.) by themselves.

With rapidly evolving logistics innovation, nowadays businesses hire contract logistics companies to maintain smooth supply chain operations which helps in the storage, distribution and delivery of goods at their destination on time and reduces the overall burden of shipping goods locally as well as globally.

In this fast-moving world, hiring contract logistics services has become a key component for managing supply chain operations more efficiently which in turn helps in improving overall business efficiency.

What is contract logistics?

Contract logistics or third-party logistics refers to services offered by a company to handle the supply chain management of other businesses. Contract logistics do not typically ship or move the products physically. However, they play an important role at various points to facilitate the smooth delivery of your goods from the starting point to the destination.

Contract logistic companies have expertise in managing important aspects of supply chain management such as storage, transportation, warehousing and inventory management. By helping at multiple steps, contract logistics companies help businesses to enhance customer satisfaction and help them grow at a faster rate.

Some contract logistics companies handle the entire supply chain management, while some offer only specific services related to supply chain management. Businesses can choose anyone as per their unique business needs. The entire process is executed with a mutual contract agreement which includes important details like contract terms, compensation etc.

What is warehousing?

Warehousing is an important part of supply chain management and is used for storing goods by businesses. It can be used as a temporary place for storage before shipping products to the next destination or it can be an end storage place before delivering products to consumers. Warehousing helps all types of businesses including physical retail business and e-commerce businesses and helps them to maintain fluctuating product demands in different situations.

Businesses need to select a warehouse as per their individual business needs and product specification. Make sure the warehouse has enough storage capacity, a shelf and racking system, efficient security system (locks etc.) to keep your product safe and secure.

Moreover, if you are storing temperature-sensitive items like pharmaceutical products or medications or frozen foods, then do not forget to check the refrigeration facility in the warehouse. Storing your goods in a well-equipped warehouse ensures that your products will remain safe and be delivered to the consumer in the desired state.

What types of services does a contract logistics company offer?

Contract logistic companies usually offer the following services

  • Warehousing
  • Inventory management
  • Order processing management
  • Transportation (road, rail, water etc.)
  • Freight forwarding
  • Reverse logistics

What types of services does a contract logistics company offer?

Save time and money

Supply chain management is an exhaustive process which involves multiple steps like packaging, storing, and carrying your goods to consumers. Contract logistic companies have extensive professional experience to handle the entire process with expertise. They have an in-built expanded network in various cities and countries to ensure that your goods are stored safely and delivered on time.

Moreover, these companies are great at negotiating charges and expenses at various points (port changes, warehouse charges etc.) and reduce the overall cost of shipping your goods. In this way, they help businesses to save lots of time and money.

They are experts in dealing with unexpected events and emergencies (accidents, adverse weather conditions etc.)

Shipping your products to distant locations involves multimodal transportation like road, water and rail. Unexpected events like accidents or adverse weather conditions are a routine part of multimodal transportation and may cause delays in delivering your products. Contract logistic companies have expertise in dealing with unexpected events. They work promptly to resolve the situation and reduce the stress that comes along with emergencies.

Help in growing your business internationally

In this over-competitive era, every business has a dream to expand globally and reach the international market. Contract logistic companies can offer great help in this regard. They can help with various steps from preparing documentation to dealing with import and export customs. They are well-versed in the government rules-regulation in different countries and make you aware, to help you be prepared accordingly.

With their professional support, you can grow your business internationally and can leverage international shipping as one of your promising business feature.

These are some incredible benefits of hiring a contract logistics company for your business. If you are an e-commerce business or a start-up looking to scale while being lean then contract logistics and warehousing is the way forward.