A Complete Information About Logistics Services

Posted by Jerald

Logistics service means that a professional company arranges transport and storage of products, including full formal and legal service, including customs services. This service is offered each time by a specialized company, both transport and forwarding and a large logistics center .

The assumption of logistics services is based on the 7R principle:

  • The appropriate product (right product)
  • Right condition
  • Reasonable quantity
  • Right place
  • The competent consumer (customer right)
  • Right time
  • Appropriate cost (right cost)

Logistics Service Operators

Nowadays, we can distinguish three logistics service providers, functioning in the market who offer services and transport forwarding and logistics , as well as extra-curricular services. The services they offer include:

  • Transport services – refer to the implementation of transport orders for a properly paid fee, the result of which should be the transport of people and goods with a limited scope of advice, which is to affect the smooth and efficient functioning of each sector of the economy
  • Forwarding services – include arranging the transport of materials, customs services, insurance, and the preparation of the required documentation
  • Logistics services – concern the implementation of transport and forwarding activities, terminal services, refining activities (e.g. foiling)

The scope of activities covered by logistics services can be quite diverse. The area of ​​logistics services, as well as companies that provide them, is called the TSL sector.

logistics services

Tasks Performed By Logistics Companies

Companies that offer logistics services perform the following duties:

  • Carrying out customs formalities
  • Dynamic sales support
  • Transport insurance
  • Transporting goods to designated places
  • Allocating funds, e.g. for the marketing of logistics services
  • Customer Service
  • Works related to handling and storage.

Reasons For The Growing Demand For Logistics Services

Currently, logistics plays an important role both in countries with high and medium level of economic development. The reasons for the upward trend in the demand for logistics services are:

  • Increase in inventory handling prices
  • Increasing the variety of products
  • Integration of economic processes
  • Increasing transport prices
  • Development of computer technologies, 

The growing trend creates a big challenge for logistics companies that have to constantly update and introduce some improvements in their offers prepared with customers in mind in order to maintain their position on the market. Companies providing logistics services, especially in the field of long-term contracts, are starting to be elements of a production unit in the field of the supply chain. In this dimension, it is important to skillfully complete the task by each party in the logistics chain, and especially by the logistics contractor, who plays a key role, influencing, inter alia, increasing customer satisfaction or increasing the profitability of the entire project.

The Course Of Logistics Services

In the process of providing a logistics service, we can distinguish 4 basic stages:

  • preparatory and organizational stage
  • implementation stage
  • control stage
  • post-inspection stage

A fairly strong interaction between the company that provides logistics services and the customer at each of the distinguished stages is of great importance. The processes and events that take place at each stage of the service are closely related. Moreover, for each of the four stages, actions are noticeable both on the part of enterprises ( service provider ) and customers (recipient). 

The first of these parties focuses on their actions on providing the service at the highest possible level, while the other party, after the service has been provided, gives a subjective opinion (evaluates the service). Difficulty is a multiple measurement, the quality of the services provided, similarly, before but also after its implementation.

Measurement of the quality of logistics services should take place during their performance, which is usually troublesome, taking into account the specificity of these services. From the point of view of logistics, an important concept related to the logistics service is customer service, which should be carried out in the area of ​​logistics activities. Additionally, it can be defined as a set of individual logistics services.

transportation
A truck leaves the TraPac LLC shipping terminal at the Port of Los Angeles in Los Angeles, California, U.S., on Friday, March 11, 2016. Photographer: Tim Rue/Bloomberg

What Is Logistics Outsourcing?

Outsourcing of logistics services for e-sellers is a comprehensive service of orders, including, among others, conducting such activities as:

  • Machine packing of goods
  • Sorting of goods
  • Replacement of damaged packaging
  • Waste disposal
  • Product storage
  • Labeling
  • Completing orders
  • Shipping orders to the customer
  • Handling returns and complaints
logistics outsourcing

Logistics Outsourcing – Advantages

The number of advantages related to logistics outsourcing definitely outweighs the number of disadvantages. The most important benefits of this solution are:

  • No need for warehouse facilities
  • Streamline your after-sales processes
  • Facilitating the restructuring process
  • Streamline your supply chain
  • Relieving the company from obligations related to the shipment of goods, handling of complaints and returns
  • Improving customer satisfaction
  • Outsourcing allows stores to focus only on sales and relieves owners of many other issues related to running a business.

Optimization of costs (related to warehouse rental, packaging, sorting, hiring new employees, shipments and order handling)

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