In today’s global marketplace efficient logistics services are essential and can have a very big influence in terms of reduced costs and improved customer experience for organisations and industries that are trying to surpass each other.
Logistics providers can step in and assist companies in making this process easier by handling all the transport, storage and customs needs.
But to better understand why these services are so used by all types of businesses no matter their size, we must first understand what a logistics company is.
By definition, a logistics company is a business that is specialised in offering logistics solutions to help businesses manage their supply chain with ease. These services are customised based on each client’s needs and can boost their operations significantly thanks to their perfect management system.
Stick with us until the end to learn about the usefulness of a logistics company for your business and what to look for when partnering with one to achieve operational excellence.
Hiring the Right Logistics Provider
To know what logistics provider to hire, you must first know the types of logistics companies available.
The types of logistics companies available are:
Freight forwarders
Freight forwarders are hired by businesses that need their products transported from one place to another, sometimes across international borders. They can also handle several aspects of the shipping process such as customs clearance and management between multiple modes of transportation.
Third-party logistics
3PL companies are often hired by businesses for their wide range of logistics services, including but not limited to transportation, warehousing, order fulfilment, management, and distribution.
Warehouses and distribution centres
Warehousing facilities and distribution centres are perfect for businesses that need distribution and storage solutions to handle their product inventory and fulfil orders efficiently. These companies provide extra services such as pick and pack, inventory tracking and shipping.
Trucking companies
Trucking companies are used by businesses that transport their products mainly on road. They can transport various types of goods, from dry to cold products, hazardous materials, or extra-large freight.
Shipping lines
Shipping companies can be a perfect choice for businesses involved in international trade because they can easily transport goods via sea routes. These companies have large container vessels with specific departure schedules for cargo transportation between ports, globally.
Rail and intermodal transport companies
Rail companies are primarily used for their cost-effective shipping options across long distances. They use intermodal services such as rail, road and sometimes sea to efficiently transport products.
Last-mile delivery
Last-mile delivery partners can help e-commerce businesses handle the final stage of the delivery process by taking the goods from distributions centres straight to the customer’s doorstep.
Specialised logistics companies
Specialised logistics businesses are best for businesses that require cold chain transportation for perishable goods, or special transportation for hazardous materials handling and oversized cargo.
Reverse logistics
Reverse logistics providers can help businesses handle the products that are returned as well as with the recycling and recall process. This way businesses can streamline their reverse supply chain process and reduce costs associated with product returns.
Benefits of Partnering Up with a Logistics Company
Businesses can benefit from several advantages when partnering up with a business. Some of them are minimised downtime, streamlined operations and fast transportation services locally and internationally. Nevertheless, let’s discuss more on these benefits to better understand them.
Reduced costs
When hiring a logistics company to handle your business needs, they will handle transportation and choose the most effective routes to decrease driving times and fuel costs. Another way of reducing costs is by implementing efficient warehousing strategies. These are just two examples of how costs can be reduced if the strategies are well implemented.
Improved customer satisfaction
When it comes to customers, logistics companies know how to deliver the best service possible so that they are 100% satisfied. By increasing efficiency in logistics, businesses will also benefit from faster fulfilment times, meaning that the orders will be delivered promptly to customers.
Stronger relationships with suppliers
Working with a logistics company that only collaborates with trusted suppliers is a huge win for businesses. These logistics companies have years of experience and for this reason suppliers see them as a good partner to do business with.
Increased industry reputation
Logistics companies have a well-established process that helps them be efficient. Therefore, businesses that use their services can gain more clients, become a more desirable business partner, and attract more employees that are highly qualified.
How Working with a Logistics Company Boosts Efficiency
Working with a logistics company can boost the efficiency of your supply chain activities in several ways. Here are just a few to mention:
- Expertise and specialisation: With the help of logistics companies businesses get a partner that can manage complex supply chain processes using their expertise and experience. This way you get more time to focus on the main activities of your business knowing that everything is handled with ease.
- Network optimisation: With such an extensive network of transporters, warehouses, and distribution facilities, logistics companies can optimise routes and reduce transit times. This is one of the biggest advantages when partnering up with a logistics company because businesses can reduce shipping costs and improve the overall supply chain efficiency.
- Technology integration: Most logistics companies use high tech technology systems such as TMS or WMS. TMS stands for transportation management systems, while WMS refers to warehouse management systems. These two technologies help automate the process, track shipments in real time and improve the inventory management.
- Scalability and flexibility: Scalable solutions can help businesses adapt to unforeseen challenges. This is a very important aspect that businesses without a logistics partner can’t manage properly. Weather it’s fluctuations in demand, seasonal peaks, or unexpected weather disruptions, logistics companies are always ready to provide a solution.
- Streamlined process: A streamlined process can help businesses eliminate inefficiencies. For this reason, logistics companies use the best practices and procedures to reduce lead times and optimise workflows in the supply chain.
- Focus on customer service: Logistics companies can help businesses improve order accuracy, deliver products faster, and establish better communication throughout the supply chain. This will result in increased customer satisfaction and loyalty.
Ensure Your Business’s Success with A Trusted Logistics Partner
Now that you know all the advantages that logistics companies offer, it is time to decide which one fits your business best. Weather you need transportation services for cold chain products or logistics solutions for oversized cargo, logistics companies can accommodate them all. Let the experts move your business onwards, by covering all the aspects of logistics and start focusing on other aspects of your business that require your immediate attention.
