Any growing business will have issues with their supply chain management at some point down the line. Whether it’s a serious logistics problem or something that just needs to be streamlined and optimised, most businesses can improve their supply chain processes – and this is where a logistics service provider can help.
So, what exactly is a logistics service provider?
A logistics service provider, as you’d probably expect, is a company that provides outsourced logistics and supply chain management services to other businesses.
This is often referred to as an LSP, and it includes 3PL (Third-party Logistics), 4PL (Fourth-party Logistics) and more, though 3PL is the most common service you’ll find.
The goal of any good LSP is to help you with your supply chain processes – this can be to help you simplify your supply chain, save money and ultimately be more efficient.
Logistics service providers should have the expertise to manage complex logistics better than you can in-house. Some of the most common LSP services that you’ll find provided are:
Warehousing services
When it comes to logistics services offered to help you with your supply chain, warehousing services are perhaps the most popular. When businesses are looking for a third-party logistics company to help them with their supply chain, securing warehouse space and then packing and shipping products are essential, and these are at the core of warehousing.
Transportation
Taking your goods from A to B sounds simple enough, right? Well, which method of transportation will be best for your business? A transportation expert can help you determine the best mode of transportation, along with helping to optimise your route, consolidate shipments and negotiate rates on your behalf.
Inventory management
Another critical service that many LSPs offer is inventory management assistance. As a logistics consultancy, we speak to many companies that struggle with knowing their optimal inventory levels – this is where help with inventory management can be invaluable.
Order fulfilment
Order fulfilment is a broad term that covers everything from receiving your goods to then distributing them to your customers. This can include distribution services, reverse logistics and tracking your orders once they’ve been sent.
Freight forwarding
A freight forwarder can be an essential part of your supply chain if you need to move goods across borders from one country to another. Freight forwarders can help with sea freight services, air freight forwarding and more.
Customs brokerage
Another logistics service that’s needed if you’re planning to ship things across international borders is customs brokerage, which ensures your goods get through customs without a hitch. Tax and duty calculations are common costs that some companies don’t consider (and they can be expensive depending on your industry!).
Supply chain consulting
Still confused or unsure as to where to start with an area of your supply chain? We’re a logistics consulting firm with decades of expertise to share on everything from cost savings to optimising your warehouse space, so feel free to get in touch.
