Different Types Of Freight Logistics

Posted by Jerald

Freight Logistics is a concept that in transport primarily defines the carriage of goods or goods transported. If we are talking about the concept of freight and logistics, it is worth knowing that although it is used in road transport, it comes primarily from maritime transport. This type of transport was also derived from road services.

However, it has been assumed that the most common concept of Freight Logistics in road transport is used to determine the remuneration that is due to the carrier for the transport of cargo, and should be paid by the entity ordering the transport of goods, i.e. by its owner or freight forwarder. The amount of freight and logistics is most often given in the order itself, but its final version is determined individually between the carrier and its customer. 

The same applies to the payment of Freight Logistics – it is determined in each case individually by the parties. Most often, freight is paid after transport and delivery of the cargo to the place indicated in the contract within a maximum of 60 days from the performance of the service. 

Freight Logistics transport

However, sometimes that the freight may be paid in advance before the carriage is made, it happens when the parties have previously agreed on such a form of payment in the contract.

What Are The Different Types Of Freight Logistics

Organizing, executing, and controlling a specific flow of goods. It starts with the purchase of raw materials and semi-finished products and ends with the delivery of the produced product to the customer. 

Do you want to know whether the entire logistics process went well? Then ask yourself whether the right things have ended up in the right place at the right time. Also paying attention to the quantities at minimal costs. If you can give a positive answer to all these questions, you can say that the logistics process went well.

Forms Of Freight Logistics

It is a broad topic and thus can be divided into different types. Every process from start to finish is a separate branch of logistics. First, you buy raw material and semi-finished products, and then you produce a product with several of these raw materials or semi-finished products. You then deliver this to a customer, but if he or she is not satisfied with it, he or she can usually return it.

Procurement Logistics

Procurement involves the process of purchasing raw materials or semi-finished products and their transport. It must be clear what the supplier must transport, it must be clear what the costs are and when these items will arrive. Purchasing is very important for a company. 

If the purchasing does not go well, the whole process does not go well. That is why it is important to look for a supplier who is reliable and also advantageous.

Production Logistics

Production is the production of products with the purchased raw materials and semi-finished products. The goal is to make the process as smooth as possible, but waste must also be taken into account. Waste refers to raw materials that can be thrown away and the ineffective allocation of time.

PRODUCTION LOGISTICS

Distribution Logistics

In Logistics, the final process is started. The produced product is now transported from the factory to the customer. Usually, this is a shop, which then tries to sell it to consumers. In this process, it is really about transporting the product to the customer.

Return Logistics

After delivery to the store, the process seems to have been completed, but what if a product is not satisfactory. It will then be returned and hopefully, it can still be repaired or reused. If you buy a crate of beer at Albert Heijn, you can also return it after you have drunk it. You will receive a deposit in return and the factory can recycle the bottles and then turn them into something new.

Types Of Logistics Service Providers:

The number of logistics service providers has increased sharply in recent decades. There are large and small parties, international and nationally oriented companies, road haulers, and multimodal service providers. 

  • carriers
  • forwarders
  • physical distributors

The Transporter

A carrier is a company that carries out the transport of your goods. If the goods arrive damaged, late or not at all, you can address the carrier about this. A carrier may use another transport company, a sub-carrier. In the context of efficiency, this sometimes occurs in practice. However, the (main) carrier remains your point of contact in the event of damage. If you wish, you can agree with the carrier that he does not use sub-carriers.

freight transporter

The Freight Forwarder

The forwarder does not carry out a transport itself, but only mediates between you and the carrier. As an intermediary, the forwarder must do his best to put away the transport order and, where necessary, accompany the carrier in his task. However, the forwarder is not responsible for errors of the carrier, as a (main) carrier is for an engaged sub-carrier. A freight and logistics forwarder sometimes takes on some tasks. This often involves taking care of transport or customs documents.

Physical distributors

The physical distributor offers a wide range of logistics services. Not only transport but also storage and distribution of goods, assembly, billing, and labeling.

Outsourcing these activities has far-reaching consequences. 

For example, the physical distributor must serve your customers exactly the way you want. It is therefore important to properly record agreements with a physical distributor. Once there is good cooperation, a physical distributor takes a lot of work off your hands so that you can concentrate on your core activities.

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