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