Business owners don’t always agree on everything, especially when their companies are in different industries. However, there is something almost everyone agrees on, logistics can be a nightmare.
Whether it’s tracking warehouse inventory or shipping goods locally, logistics can keep business owners up at night trying to streamline the process. If your business ships internationally, creating an efficient logistics plan can seem impossible.
Thankfully, a simple online search for a logistics company near me can put you in touch with services ready to help. However, before you sign a contract with a logistics supplier it’s a good idea to ensure they provide the services you need. There are different types of logistics services and you don’t want to partner with the wrong provider.
What is a Logistics Company?
If you’re envisioning an office filled with maps, you’re not too far off, though most logistics companies today have moved away from paper maps and rely on digital technology instead. The primary purpose of a logistics company is to help its clients move products from one location to another. How involved in the process depends on what you need from the logistics provider.
Some only pick up and drop off shipments while others take care of warehousing, packaging, and even disposing of old or unsellable inventory. For example, if you have discontinued products that contain potentially harmful chemicals, some logistics services ensure these items are safely and legally disposed of.
You don’t even need to be the CEO of a large company to use logistics services. If you have a dropshipping business, a logistics supplier can handle everything to help ensure your customers are receiving their purchases on time.
So, to sum it up, a logistics company takes care of shipping your products and sometimes more so you can focus on other business tasks.
Types of Logistics Services
Some logistics companies do everything from tracking warehouse inventory to ensuring it gets to the right customers. Others only handle transportation. Knowing a little bit about the different types of logistics service providers can make it easier to pick the right one for your business needs.
Transportation or Freight Carriers
A transportation or freight carrier only focuses on moving goods from one place to another location. Think of it as an A-B arrangement: A is the pickup spot and B is the destination. The provider can also focus on local, national, or international shipments but some offer all three services.
Some examples of transportation companies include:
- Trucking companies, both short and long-distance
- Rail/Train services, this type of transportation typically is more cost-effective if you’re moving goods across the country
- Ocean carriers, you can save on shipping costs if you have a flexible delivery schedule
- Air freight carriers, this is a little more costly but can get your goods to their destination in a relatively short time
Something to note is most freight carriers use a third party to move your goods. Before entering into a partnership, it’s a good idea to research the logistics company’s third-party carriers to ensure you don’t run into any delivery issues.
Freight Forwarders
This type of logistics provider is similar to working with a consultant. They can help you streamline your logistics operations or help you choose the right logistics partner. If you’re dealing with imports and/or exports, the freight forwarder can also handle the necessary paperwork.
Warehousing Providers
Not all businesses have access to warehouses. Yes, buying or leasing a warehouse is an option but it’s also expensive. Sometimes, it’s more cost-effective to work with a warehouse provider.
This type of logistics company stores your goods in a safe location until everything’s ready for shipping. An example of a warehousing company is Amazon.
The massive online marketplace often allows its third-party vendors to store their merchandise in their warehouses. You will pay a fee for the storage space but it’s significantly lower than leasing a warehouse.
Distribution Management Providers
If you’re searching for a logistics company that does everything, you may want to go with a distribution management provider. They can do everything from locating suppliers to manufacturing, packaging, and shipping out your goods.
In a sense, a distribution management company is similar to a freight provider only it comes with a few more services like manufacturing.
Choosing the Right Provider for Your Business
Whether you need to move goods across town, to another state, or even internationally, logistics are crucial to the process. Rather than managing everything yourself, consider partnering with a logistics company.
The right service provider can tailor their services to meet your specific business needs, ensuring a smooth and efficient operation. Taking this approach allows you to focus on other aspects of your business while the experts handle the complexities of transportation and supply chain management.
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