Contract logistics

Contract logistics is a service provided by outsourcing company that includes all or chosen logistics functions. Companies outsource their logistics management departments in order to lower costs of operating. The main logistics functions that can be outsourced are:

  • design of supply chains,
  • design of facilities,
  • warehousing,
  • transport and distribution,
  • processing orders,
  • collecting payments,
  • managing inventory,
  • (partly) customer service.

Logistics management becomes more and more important function in the company. It is difficult to make it efficient if the company operates at low scale. Therefore many medium and even large companies decide to outsource their logistics department. External company that provides services to multiple companies is able to make the processes much more efficient.

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