S L Packaging & Transport Ltd

What is a logistics company and how does it work?

Share on facebook
Share on twitter
Share on linkedin

What do logistics companies do, and how do they work? Our informative guide answers this in detail, explaining not only what a logistics company is, but the benefits of using one for transportation of goods.

What is a logistics company?

A logistics company manages the planning, implementation, the transportation and storage of goods and services. Logistics companies can also be in charge of managing the information within a supply chain, between the points of consumption as well as the points of origin. This could include transportation, shipping, warehousing, disposal, packaging and security of products, materials and services.

There are two types of logistics companies:

  • Freight brokers – these are often the go-between for carriers and shippers. By using freight brokers, you’ll be able to experience a network of thousands of small to medium-sized carriers, allowing you, as the client, to choose from multiple shipping options – and provides the greatest level of flexibility.
  • 3PLs – these are asset bearing firms, offering single services including transportation and warehousing, as well as a package of services to manage entire supply chains. Typically, 3PLs are commonly known to create longer-term relationships with clients.

Benefits of using a logistics company

  • Flexibility – with a logistics company, the ability to scale up or scale down is easy – and always an option, reducing delays if there’s an impromptu spike in orders.
  • Shipping and transportation – logistics companies already have fleet vehicles in place which are well-established and reliable, meaning that manufacturers do not need to invest in a fleet themselves.
  • Packaging – by having a logistics company, this often minimises error and delays, allowing customers orders to be accurately fulfilled on time.
  • Warehousing – warehousing is becoming an increasingly expensive service, but logistics companies take on the responsibility of finding the appropriate and affordable storage space, saving clients’ time and stress.

Learn more about our transport and logistics service online – as well as exploring our range of packaging products. Contact a member of our team here at Lesters Logistics to find out more about what a logistics company does now.