Defined: Logistics Services

As any business that ships products know, logistics can be difficult to manage. Outsourcing logistics functions can help businesses of all sizes focus on their core competencies and avoid getting stuck in the weeds of shipping.  

In this article, we’ll discuss what logistics services are, what LSPs do, and some of the most common types of logistics services and their benefits.  

What are logistics services?

Logistics services refer to the activities involved in the management of the supply chain, from the point of origin to end consumer. These activities include transportation, warehousing, inventory management, order fulfillment, and customs clearance, among others. Logistics services are critical for businesses to ensure that goods are transported efficiently and effectively to reduce costs and improve customer satisfaction.

Logistics services providers (LSPs) offer a range of services that allow logistics activities to be outsourced. Services can be customized to meet the specific needs of LSP clients. LSPs work closely with their clients to understand their business requirements and provide tailored solutions to manage their logistics operations. While LSPs aren’t the right fit for everyone, in the best circumstances LSPs enable businesses to focus on their core competencies while leaving the logistics to the experts, enabling the business to save time and resources, reduce risks, and improve overall operational efficiency.

What are types of logistics services?  

Obviously, because logistics services refer to all management from point of origin to end consumer there are many types of services. Common logistics services include the following:  

- Inventory management

- Warehousing & distribution  

- Order fulfillment  

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Inventory Management

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Inventory management is the process of overseeing the flow of goods in and out of a warehouse or distribution center. LSPs offer this service that commonly involves tracking inventory levels, monitoring stock movements, and ensuring that sufficient stock is available to meet customer demand.

Inventory management also involves forecasting demand, setting stock levels, and implementing strategies to minimize stock losses and waste. By efficiently managing inventory, businesses can reduce costs, improve customer service levels, and optimize their supply chain operations.  

Warehousing & Distribution  

Warehousing and distribution logistics services involve the storage, handling, and movement of goods in a warehouse or distribution center. These services include picking and packing orders, labeling, and transportation of goods to their destination. Warehousing and distribution logistics services ensure that goods are stored in a safe and secure environment and that they are transported efficiently and effectively to meet customer demand. By utilizing warehousing and distribution logistics services, businesses can optimize their supply chain operations, reduce costs, and improve their overall operational efficiency.

Of course, there are considerations for businesses when deciding to keep their operations in-house or to outsource to a warehouse or distribution center. Keeping logistics operations in-house requires investments in infrastructure, technology, and staffing. Whereas outsourcing can provide costs and time savings but may result in less control over the process. Finding the balance that works for individual businesses is crucial.  

Order fulfillment  

Similar to warehousing and distribution services, order fulfillment services help businesses get their products to customers. These services include returns, kitting and bundling, and outbound shipping.  

Returns services, also called “reverse logistics”, is the management of products that are returned by customers. This involves managing receiving at the warehouse, examining the returned product, and identifying common issues. Kitting and bundling services assist with the packaging of several products, or SKUs, to be shipped in a single package. Outbound shipping is an umbrella term for all processes of selecting the appropriate shipping method, arranging transportation, and managing the delivery process.

Logistics services play a crucial role in ensuring the smooth flow of goods and products from the manufacturer to the end customer. In today's fast-paced and highly competitive business environment, logistics has become more than just moving goods from one place to another. Outsourcing logistics services to experienced companies helps businesses save time and money.  

Effective logistics services can help companies reduce costs, increase efficiency, and improve customer satisfaction. Check out what iDrive Logistics offers here. https://www.idrivelogistics.com/talk-with-an-expert.