Contract Logistics

Contract Logistics

What is Contract Logistics

 

Contract logistics is the outsourcing of logistics Services to  a third party company. Contract logistics companies handle activities such as designing and planning supply chains, designing facilities, warehousing, transporting and distributing goods, processing orders and collecting payments, managing inventory and even providing certain aspects of customer service.

The growing importance of intra-regional markets, the expansion of e-commerce, and the need for specialized services are three areas where logistics can realign its strategies for ongoing success throughout the coming decade.

Top 5 Areas of Focus on a Long Term Logistics Strategy

The top five areas that are important when focusing on a long term logistics strategy are:

  1. Maintaining high levels of customer service (96%)
  2. Lowering costs (94%)
  3. Improving efficiencies and productivity in logistics operations (93%)
  4. Attaining the ability to target logistics initiatives that drive business growth (79%)
  5. Improving Asset Utilization (74%)

This is where a third party logistics company can come in and offer services that help achieve the goals.

Logistics is an integral part of a firm’s strategy. An effective and efficient logistics strategy can be the difference between winning and losing a contract. As customers increasingly seek to differentiate themselves , their needs become increasingly diverse. A one-size-fits-all strategy does not apply anymore in the logistics environment.

In recent years, Miami has risen to the front of the cities providing logistics solutions however; this has come at a price. Most of the 3PL companies in Miami focus on freight forwarding, shipping and warehousing.

Due to the complex nature if supply chain, most of these companies try to stay away from offering the complete repertoire of services expected from a 3PL company. We should not forget about the cost factor. Many customers are looking for the cheapest possible solution forgoing the actual delivery on the services.

Most customers confuse logistics with shipping. Logistics companies in Miami are struggling to keep up with the needs of their customers when it comes to distribution and order fulfillment

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