It is where you have a partner warehouse that will receive, store, and ship goods based on the details of an agreed-upon contract.
Keep in mind, contract logistics entails more than just the physical work in moving the product from the production line to the warehouse and the end user. It also involves managing all the contracts with the raw material suppliers, manufacturers, contract warehouse companies, distribution centres, and retailers.
These contract terms and considerations offer greater details involving the movement of goods so that the right number of materials are shipped and received at specific times. The contracts will also state what services each business partner, supplier, manufacturer, shipper, and logistics company will agree to provide to your company.
Inventory management involves the storing and stocking of raw, work-in-progress, and finished goods at the right levels in the warehouse to meet customer demand without increasing costs or waste.
Order processing management
The management of picking and packing products to fill customer orders as those packaged goods are delivered to a shipping company. Transportation and freight forwarding services: This service involves aligning all the logistical strategies of how to receive raw materials and ship finished goods with shipping partners — whether it is to manufacturers, distributors, or end customers.
Reverse logistics involves the transportation strategies and methods used to reclaim products from end users for the purposes of recapturing the products’ value. This service may require obtaining the product from a customer due to quality control issues, the product is not desired by the customer, or the product has become obsolete.
Smart Logistics will ensure the logistics service contracts detail required protections that will be valuable to your company, such as:
- Contract terms
- Liability damage responsibilities
- Consequential damage responsibilities
- Warehouse lien procedures
- Contract termination obligations
Benefits of Contracting Logistics Services
Smart Logistics services provide a range of benefits to companies that wish to further leverage their supply chain strategies. Some advantages that you may gain will be based on the services that you wish to contract from the Smart Logistics, which could include:
- Versatility: Smart Logistics will adjust the services it offers to your company based on your ongoing needs and customer demand. It can scale operations quickly and cost-effectively.
- Supply chain improvements: Smart Logistics can help fill the supply chain gaps to make your operations efficient. It can discover problem areas and provide solutions that are more tailored to how your processes function.
- Cost savings: Smart Logistics offers cost savings for companies by reducing warehouse labour and operational costs. We are also partnered with numerous shipping and freight forwarding companies, which allows us to develop logistical strategies that save on fuel and transportation costs.
Products and Industries Using Contract Logistics
Smart Contract logistics can be used for a wide range of industries whose supply chains are complex because of the types of products that are manufactured. For example, pharmaceutical companies often rely on contract logistics companies due to the nature of certain medical products that could contain hazardous materials or require temperature-controlled storage and transportation solutions. Smart Contract logistics can also provide benefits for companies dealing with high-volume production lines.
This solution also benefits companies that operate internationally. Smart Logistics is aware of import/export custom duties and government regulations based on the region. It can coordinate all the processes for a smooth supply chain. Contract logistics are utilized by companies that are expanding their current operations and need versatile warehouse, order processing, and transportation options.
The types of products that can be used with contract logistics services are only limited by what Smart Logistics wishes to handle. Many companies do not handle livestock. Other companies will not transport hazardous waste. Speaking directly with the Smart Logistics will allow you to understand what products and materials we will receive, store, and ship.
Services include but not limited to:
- Storage, warehousing and materials handling.
- Packaging and unitisation.
- Inventory control
- Information and control.
- Bar coding
- Supply/Demand Planning
- Order Fulfilment