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.