What Does a Logistics Company Do? Here’s What to Expect

Many businesses like yours rely on having a steady supply chain of goods or materials to operate. Managing and organizing the movement of these supplies is a key element to a business’s success. However, there are a lot of moving parts, and keeping track of this process while also pursuing your business’s goals can be a tall order.

Recent events, including the pandemic and labor shortages, have shown just how much a supply chain interruption can disrupt business and local markets. Sometimes the best solution is to outsource the work to somebody else. That’s where a logistics company comes in.

Logistics: From Point A to Point B

Logistics is the process of getting goods and materials from one location to another. A logistics company is in the business of organizing and implementing the movement and storage of these vital supplies for clients like you. The logistics process can be a complicated one. Arranging transportation/shipping, managing warehousing, providing packaging, distributing stored supplies, and ensuring security are all part of what a logistics company does.

There are two primary types of logistics companies: freight brokers and third-party logistics (3PLs). A freight company typically acts as an intermediary between businesses with supplies to ship and the carriers that do the shipping. These companies offer flexibility for your supply chain by having a large network of carriers.

3PLs, meanwhile, are larger, asset-bearing firms that own their own fleets and storage facilities. These companies form long-term working relationships with their clients, arranging customized supply chains to fit their client’s needs. These companies ensure efficiency by having more direct oversight of your supply chain.

Logistics companies typically offer one or more shipping services, based on the size of the shipments and the distance they’re being transported. These include less-than-a-truckload (LTL), truckload, small package, and international shipping. They may additionally offer you logistics technology services to help with things like tracking and delivery coordination.

Do You Need Logistics Help?

Entrepreneurs like yourself have a lot on their plates just handling day-to-day duties and providing your goods or services to your own customers. If you don’t already have a partnership with a logistics company, you’ve probably been managing your supply chain in-house, either through your staff or personally. Even if you’ve grown accustomed to doing business this way, there are signs to look for that you may benefit from what a logistics company does for its clients.

One sign that you’re having supply chain troubles is recurring or frequent delays or missed deliveries. A logistics company can ensure a reliable supply chain with minimal hiccups. Accidents, significant amounts of lost or damaged supplies, or multiple/frequent violations of shipping documentation requirements are also indications you may need help navigating logistics bureaucracy and ensuring security for your supply chain.

Deliveries being made at inconvenient times show that you could benefit from a logistics company’s coordination with your locations to ensure your supply chain is unobtrusive. High or growing overhead costs from having to maintain and staff a warehouse are other problems a good logistics company can solve. Inflexible in-house shipping expenses, regardless of how small a shipment may be, can be addressed with a logistics company and its variable rates for different shipment sizes.

A drop in the quality of customer service is sometimes a sign that your staff is having to focus too much on other things, like coordinating logistics. Hiring a logistics company allows you and your staff to give your customers more of the attention they deserve. Finally, outdated logistics technology and a lack of understanding of the latest logistics practices and standards show that your business could benefit from a logistics company’s expertise and its ability to keep on top of the latest technological developments.

Get Started With Nexterus

Your business’s customers deserve the best service you can offer them, and Nexterus can help you provide that. We’re a logistics company with over 75 years of experience ensuring our clients’ supply chains run smoothly and efficiently. We coordinate storage and transportation for shipments of all sizes, both domestic and international. For more information on what a logistics company like Nexterus can do for your supply chain, get started by submitting a form today!

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