Being able to handle all logistics aspects of your business is one key factor in being an effective company. A common example is a production manufacturer who needs to buy materials from vendors and retailers while also having products distributed at the same time. Outsourcing this process might be more ideal for certain companies, but handling it on-site will require some investments as well. There are many ways that businesses can go about their logistical operations, so there really isn’t any one “right” answer when it comes down to outsourcing or not doing so on-site.
What is Contract Logistics?
Logistics outsourcing is much more than just warehousing, fulfillment and distribution. It refers to outsourcing of logistics management to an external company – a third-party logistics partner. They undertake the planning of supply chain on your behalf from designing warehouse facilities, infrastructure transportation and distribution of goods as well as order processing collection payment systems too!
A contract logistics company has the expertise to manage and handle multiple aspects of transportation, namely: network analysis, route optimization, warehousing requirements and compliance with other related industries.
Benefits Of Contract Logistics?
Contract logistics is a partnership between your company and a third-party where the latter handles all of the operational responsibilities for managing specific aspects of material flow. Here are some advantages that you may enjoy with adding contract logistics to your supply chain:
1) Efficiency: With contracting, there’s less overhead involved by dealing directly with suppliers; this means more savings on time, money and effort.
2) Lower risk profile: Contract logistics implies lower exposure to financial risks associated with supplier quality or price changes because it manages vendor relationships instead
3) Control over inventory levels without sacrificing safety or premium product identity
4) Flexibility in procurement execution
There could be several more benefits of appointing a contract logistics company, depending on the industry you operate in – but those mentioned above are some of the most common ones.
Choose ProConnect Integrated Logistics
With operational expertise across several industry domains like IT, e-commerce, FMCG, Retail, Apparel, spare parts, pharma and other dry goods, ProConnect Integrated Logistics has proven to be beneficial to many companies across UAE, Saudi Arabia and India. We believe in offering integrated supply chain solutions, making complex logistics simple for you.
With dedicated teams for all functions, we offer cost optimization and operation efficiency for all your needs. For any logistics enquiries and questions, contact us today!