What is a Logistics Company?
Many people think they know what a logistics company is, but the actual reality is their knowledge only scratches the surface. That’s not a bad thing, why do you need to be an expert at anything logistics when there are specialist couriers operating nationwide? In this blog post, I shall explain exactly what a logistics company is, what they do and why you should hire one.
So what is a Logistics Company?
Simply put, a logistics company assists other companies to move goods from ‘Point A’ to ‘Point B’. This could be anything from manufactured goods, services or information. Essentially, anything that needs to be transported from one location to another can be done by a logistics company.
A good example to use for a logistics company would be same day couriers. Their primary function is to move goods from one place to another on the same day. Courier companies such as these can be used by anyone from online retailers to businesses selling hoses.
Overall, logistics companies will help to plan, implement and execute the movement of anything from one point to another. Some companies will only help with certain parts of the logistics process, such as the actual delivery of goods. However, some companies will be able to take part in the full process.
What does a Logistics Company do?
As mentioned a little bit above, a logistics company is a company that assists with the movement of goods, information and/or services from one place to another. There are many types of companies, multi-drop couriers, international hauliers and shipping companies. However, there are some specialist terms you need to know.
Freight brokers will act as a go-between for shippers and carriers. Typically, they do not have any assets to bear in terms of actual ships, trucks or warehouses. Instead, they will operate a network of other small to large businesses to provide you with the services you need. This is here to offer their clients many shipping options, and an alternative to larger companies. Typically used because they can offer great flexibility.
Almost the opposite of freight brokers, 3PLs are asset-bearing companies which mean they have their own warehouses, processes and vehicles. Often, they will offer single services such as transportation or storage of goods. However, one of the main selling points of 3PLs is that they can offer a full range of services. They can plan out your logistics needs, and carry out these requirements using their own assets.
Why Partner with a Logistics Company?
There are many reasons to partner with a specialist logistics company for your business’ needs. Here are some of the main reasons outlined below:
Warehousing and Storage
For a lot of businesses, they will need somewhere to store their goods ready for transportation. For example, if you are an eCommerce business you will need a place to store your stock before it can be shipped out to the customer. Logistics companies can offer you their warehousing and storage services as part of their fee. This is even more true if you choose to use a 3PL for your business.
Not only this, but warehousing is expensive! Why add this as a direct cost to your business when there is a company already out there ready to handle the costs for you.
Accurately taking care of packaging client orders demands experience, a large workforce depending on the number of orders you are processing on a daily basis. And the most crucial element, time. Which a lot of business owners do not have to run packaging operations.
With all this said, logistics companies can often provide you with packaging services on top of the standard services such as warehousing and shipping. Logistics companies will have already invested in the required staffing and processes to fulfil orders in this way, and they can simply charge you a fee to take care of this for your business as well.
Shipping and Transportation
Perhaps the main reason to work with a logistics company, and definitely the most well known! Logistics companies offer shipping and transportation as one of their main services. Which means if you need to move goods, services or information from one place to another, no matter the distance, they can take on this work for you!
As I’ve mentioned before, there are many types of transportation to suit your needs. Same day couriers, specialist transport and two-man delivery being only some of the transport services you can take advantage of when you work with a logistics company.
Crucially, logistics companies have the capacity to scale up and scale down their operations depending on what the business needs. Are you currently experiencing a busy period for orders (for example, Black Friday and Christmas sales), then you can increase the service for a short period of time with your partner company.
Alternatively, if you are having to scale back your operation for whatever reason, logistics companies can help with this too. Whether you are looking to store less stock in warehouses, or reduce the number of deliveries you are making, logistics companies can offer the flexibility to take care of your needs.
So there you have it, whatever your business does whether you are an eCommerce company or a large manufacturer of specific items, to anything in-between. Logistics companies can help you with the planning, implementation and execution of all your needs. No matter the size of your operation, or if you plan to regularly scale up and down your needs.