Saturday, April 13, 2013

Contract Logistics or Outsourced Logistics


From the link: http://www.investopedia.com/terms/c/contract-logistics.asp

The outsourcing of resource management tasks 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. Examples of major contracts logistics companies include United Parcel Service, Kuehne + Nagel, Exel, Genco and DHL.

Logistics management is an important component of many companies' profitability and overall success. While some companies manage their own logistics, others find it more efficient to hire specialized contract logistics companies to manage their logistics for them. Contract logistics companies often need to develop a deep understanding of how different industries work in order to best manage the logistics of a variety of companies.

Planning, implementation, and control of a logistics system provided through a third party under a contract.

The pressure to rationalize and cut costs is forcing industrial and commercial firms to outsource logistics services more and more. While standard activities such as transportation, handling and warehousing have dominated in recent years, today companies are looking further afield by outsourcing more complex functions. Long-term contracts tailored to the specific needs of each customer make up a special type of logistics services: contract logistics.

1 comment:

  1. All Jayem Logistics services work on strict deadlines and through all kinds of unseen issues and obstacles.
    Best Logistics Company in India

    ReplyDelete