Warehousing and Distribution Services

In manufacturing, supply, and retail, warehousingis very vital. A warehouse is where the products are stored. Distribution is also an essential aspect in this line. This is the delivery of the product to the other aspect of the supply chain. These are major aspects of logistics. Logistics has to do with warehousing and distribution.

Due to the difficulties manufacturers and other players in the supply chain face with logistics, they outsource to companies that can provide warehousing and distribution services. These logistics companies have to oversee the outsourced aspect. If warehousing is the case, they have to get the requisite warehouse even if the products require cold storage; they’d have to get it.

The outsourcing of logistics can be to third party and fourth party logistics companies. Third party logistics handle the logistics themselves with their equipments and facilities. However, fourth party logistics companies outsource aspects of logistics out to other companies. For instance, if the products require cold storage, they outsource the storage to companies with cold storage facilities.

In several aspects such as healthcare, high tech, retail, automotive, and industrial, the necessity of logistics services cannot be overlooked. Without proper logistics management, there can be a standstill as raw materials and produced products have to be properly channeled to their normal courses.

Contract (dedicated) and multi-client facilities

A logistics company can be a dedicated company working under a contract. It can be that there is an agreement between a manufacturing company and a logistics company to have the latter take charge of the logistics of the former during the duration of the contract. Here, the manufacturer or the distributor knows that there is a dedicated logistics arrangement for the product. It could be that the manufacturer does not have distribution equipments but has to get the products to several suppliers. The logistics company has to provide distribution to the suppliers.

Logistics companies can also operate in a multi-client facility structure. This means they can have facilities that can accommodate logistics arrangement for several companies.

Comprehensive value-added services

Every business is looking at giving more as customers are looking for more value for money. Thus, logistics companies are also focusing on ways of helping manufacturers improve their products by providing services such as kitting, bundling, and customization and packaging. Kitting is a service provided by logistics companies by adding components of a product to the package. For instance, adding HDMI cables to the package of television sets. This makes the product much better.

Complete end-to-end transportation solution

Logistics companies take care of end-to-end transportation as this is part of their job description. Thus, the seller can rest assured that transportation to the warehouse is not an issue that needs to be sorted out again. More, from the warehouse to the supplier or retailer, there is assured transportation arrangement. Some logistics companies provide international logistics arrangement as they can work out shipping to other countries where supply has to be made. It is all in the course of the business.