Amware is a third-party freight and logistics provider (3PL). While a good number of our customers understand and take advantage of our freight services, many are still a little fuzzy on what “logistics services” means and how those services might help their businesses. So today we’re answering a question we receive quite often: “What exactly are logistics services?”
What are Logistics Services?
Generally speaking, logistics is the term used to describe the coordination and movement of people or goods from one place to another. People (typically logistics coordinators or logistics managers) and processes ensure the smooth flow of this movement. School busing is a great example of logistics service. The bus garage manager coordinates the buses and drivers, the number of stops each bus has to make, and most importantly, what time the child at each stop needs to be ready and waiting. As long as the bus is mechanically sound and the driver departs promptly, the logistics process ensures the children will arrive at school on time.
In the business world, when we talk about logistics services, we’re most often referring to physical goods being moved from point A to point B. In today’s global manufacturing space, the term, “supply chain,” is also commonly used – and confused with logistics services, as are the management components associated with each. Keep reading to learn the differences.
Logistics vs. Supply Chain (SC)
Logistics services are those which encompass the planning, implementation, and control of the flow of goods. This process includes transportation, warehousing, and inventory; from manufacturer to end-user delivery. Logistics management can include all internal, external, inbound, and outbound transport and movement of the product(s).
The supply chain is the process through which a product goes from beginning to end, from sourcing raw materials to customer consumption of the goods. SC includes both the physical and digital flow of goods and includes all of the people and businesses that make it possible, including vendors and customers.
Supply Chain Management (SCM) vs. Logistics Management
Supply Chain Management is the process of planning and managing all activities in the supply chain. SCM includes logistics management but also includes other activities including manufacturing processes, sales, marketing, and even product design.
Logistics Management is the part of SCM that only includes the logistics of transporting and storing the goods, though this does include both the physical and digital management of information as well.
Why are Logistics Services Important?
Logistics services can improve efficiency within your supply chain to ensure you’re receiving maximum value with the storage and transportation of your manufactured goods. Creating a warehousing and freight plan that fits with your business model, as well as your budget, is where logistics services can help tailor your bottom line.
Logistics services include a variety of options, the elements of which can be customized to your business needs. These services include the following:
- Freight Transport including intermodal transport, combined transport, consolidation or groupage, and express transport through various modes including ocean and short sea freight, as well as road, rail, and air transport.
- Warehousing as well as associated services including receiving, storage, shipping or consignment, order processing or picking, and distribution warehousing. This can include public, private, or specialized warehousing facilities.
Learn More About Logistics Services with Amware
When faced with financial challenges, too many product-based businesses simply raise the price of their goods. This forces end-users to compensate for company losses and, in some cases, can jeopardize client relationships and the company brand. At Amware, we work with clients to recover losses on the expense side. Adding or improving logistics services is an area where we’ve been able to help clients reduce their costs, while at the same time maintaining (and in many cases improving) their service. While largely invisible to the end-user, these efficiency improvements translate to happier customers and more of them. Profitable businesses receive an even greater benefit from added or improved logistics services as expense reduction immediately feeds the bottom line.
Amware is a third-party freight and logistics service provider offering full supply chain management and logistics services to businesses in Northeast Ohio and beyond. Contact us today for a free consultation and learn how we can make your logistics services work more efficiently for you and for your customers.