Posted in Operations and Supply Chain Terms, Total Reads: 811
Definition: Contract Logistics
At times firms outsource their logistics management to ensure profitability and to stay focused on their core competencies. Contract logistics companies are logistics management firms that handle activities like creating, designing, planning supply chains for firms, designing layouts, warehousing, transporting and distributing goods etc. Some of the major contract logistic firms are DHL, United Parcel Service, Genco etc.
These are specialised firms with deep knowledge of various industries and provide customised, efficient management. They combine various logistic functions to create service packages that are complex and cater to the complete set of logistics needs of a client. They work on the basis of a contract between the logistics provider and the firm which ensures continuity unlike transaction based companies. These service providers are also known as third party providers (3PL) or full service provider.