What is contract logistics and what opportunities does it offer?
What is contract logistics? General definition
Contract logistics, being an advanced logistics service, covers not only the storage of goods. It is an integrated process that includes a wide range of services, such as planning, coordination, control of goods flow, information and management of all related services.
As part of this service, companies can enter into contracts with specialised logistics providers (3PLs), which allows them to effectively manage complex logistics operations without the need to involve their own resources.
A wide range of services
The range of services offered by contract logistics is broad and includes not only warehousing, but also picking, packing, transport, inventory management, returns handling, order processing, customs and freight forwarding services. The goal of this integrated approach is to optimise costs, increase operational efficiency and improve customer service.
Companies that use outsourced logistics services can focus on their core business, avoiding the costs of logistics infrastructure and gaining access to modern technologies, which increases their competitiveness in the market.
Integral role in e-commerce
Contract logistics plays a key role in the e-commerce industry, ensuring efficient online order fulfilment, fast delivery and effective returns management, which is essential to maintain high levels of customer satisfaction and sustain growth in the fast-growing e-commerce sector.
What are the benefits of contract logistics?
- Flexibility and competitiveness in the market
Contract logistics has a number of advantages for businesses. First, it allows you to flexibly adapt to changing market conditions and customer demand.
It also allows you to respond quickly to crises or unusual events, such as increased orders, vehicle breakdowns, or changes in regulations governing logistics activities. Companies can easily adapt their logistics needs by increasing or decreasing the amount of outsourcing depending on their current needs.
In addition, thanks to the specialised services provided by logistics operators, companies can benefit from the latest technology, know-how and industry best practices, which helps to improve customer service and market competitiveness.
- Reduced costs
Another advantage of contract logistics is the reduction of operating costs. By leveraging economies of scale and synergies, logistics providers can achieve lower unit costs than companies operating independently. Contact logistics services allow companies to avoid the costs associated with maintaining their own logistics infrastructure and the risks associated with fluctuations in demand for their products.
Improving efficiency
Contract logistics can also help improve the efficiency and quality of logistics processes. Logistics operators have advanced IT systems and operating procedures to optimise all stages of the supply chain. This helps to reduce order fulfilment times, minimise the risk of errors and increase transparency and control over the entire process.
It is also worth noting that this type of logistics outsourcing can bring environmental benefits by reducing CO2 emissions and natural resource consumption. Logistics providers strive to continuously improve their processes to minimise their environmental impact, which can lead to a reduction in the environmental footprint of the entire supply chain.
Contract logistics is the backbone of any business
Contract logistics allows companies to achieve operational efficiency, flexibility, competitiveness and sustainable development. By working with logistics operators, a company can focus on its core business goals.
Raben Ukraine is a leading logistics company specialising in contract logistics. We provide a range of services in warehouses, including receiving goods, picking, packing, handling returns, pallet management, and preparing transport in accordance with retailers' recommendations.
Modern warehouses that are adapted for different types of goods, including those requiring special storage conditions, are our priority. Thanks to innovative IT systems, flexible solutions and a specialised infrastructure, we ensure that orders are processed and handled at the highest level.
- What does the process of storing goods include?
Warehousing is a key part of the supply chain, including logistics operations in the warehouse. Goods must be stored in optimal conditions to preserve their value. What does the process of storing goods look like?
Stages of the warehouse process
Warehousing is a part of the logistics process that is highly dependent on other elements of the supply chain, such as delivery or pickup of orders. Throughout the entire process, it is extremely important to coordinate all activities properly. Warehouse logistics consists of four key stages that follow each other.
- The first stage is the receipt of goods, which must be confirmed by appropriate receipt documentation. Operations performed at this stage include unloading, control of goods and transport to the storage area. The next stage involves structured storage, i.e. placing the goods in the storage area.
- This is followed by picking, which is carried out in the storage area or in another dedicated room. The key operations at this stage are the qualitative and quantitative control of goods and their labelling.
- The warehousing process ends with the dispatch of goods, i.e. the moment when they physically leave the warehouse. All operations carried out in the warehouse must be properly planned. It is necessary to provide the right conditions for the stored products, technical equipment and, of course, a team of employees. Nowadays, many companies decide to outsource warehouse operations in order to avoid investing in expensive resources.
Outsourcing of warehouse operations
Warehousing services are very popular among entrepreneurs who do not want to invest in warehouse infrastructure, necessary equipment, IT solutions or employees. Outsourcing also means transferring possible risks to an external company. The logistics operator is responsible for uninterrupted and fast delivery in accordance with the manufacturer's specifications. By using outsourcing services, entrepreneurs can focus on their core business, creating a competitive advantage in the market. ‘Raben Ukraine, a leading logistics operator, provides professional warehousing services. We offer a comprehensive service that includes unloading, deconsolidation upon receipt, storage, picking of goods for shipment and distribution. The logistics operator also provides services such as co-packing and co-production, which include product picking, component combination, labelling, packaging or repacking of goods. Modern IT systems also play an important role in warehouse logistics. ‘Raben Ukraine offers solutions that ensure automatic information exchange and transparency of warehouse operations.
By entrusting logistics processes to an external company, every entrepreneur can get more time for other things and not worry about timely deliveries and order service.
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