Some companies rely on contract logistics. Why is this the case and what does it actually consist of?
Every company, regardless of industry, strives to manage its costs rationally. A key area where we can find savings and not lose service quality is logistics. Personnel, our own warehouse, specialized machinery, systems to operate them are factors that generate expenses. If we want to save on these costs, it is then worth using contract logistics in the company.
Contract logistics is a type of service involving a series of operations carried out on warehouse space. The operator offering it shoulders full responsibility for all procedures and safety of goods. The process lasts practically from the manufacture of a given product until it is handed over to the final recipient.
Contract logistics thus combines traditional logistics with the processes of managing the entire supply chain. It is one of the most popular outsourcing services among e-commerce stores, among others.
This service is provided by specialized companies that have their own logistics facilities, such as:
- their own warehouse or network of warehouses,
- appropriate know-how,
- appropriate equipment and machinery, allowing them to serve customers from different industries,
- fleet of vehicles.
Contract logistics provides an easier way for a company to enter the market - without the need for its own warehouse and specialized personnel.