Logistics is at the heart of the transformation and development of modern day enterprise. High quality logistical management in turn reflects well on the management and strength of any company. However, the limited manpower and resources of most SMEs prompt them to seek a professional logistics company to work on their behalf. This is a good option, but how do you know which logistics company is the most suitable and effective for your business? Let’s discuss.
Types of Logistics Companies
According to the types of services they offer, logistics companies can generally be grouped into the following categories:
#1 Transportation Logistics Company: Mainly provides cargo transportation services, such as freight or express transport. Distribution services range from smaller parcels to large cargoes. Transportation may be conducted from store to store and store-to-customer, and can handle longer transportation distances. Larger companies may also offer international delivery.
#2 Warehousing Logistics Company: Mainly provides storage, maintenance and management of goods. Warehouses are equipped with temperature and humidity control, as well as refrigeration/freezing if needed. Companies can also offer short-term distribution of goods to customers.
#3 Comprehensive Logistics Company: Provides a more diverse array of logistics services, from general logistical activities, transportation, warehousing, consulting, and customs declaration services.
Types of Services that Logistics Companies Can Provide
#1 Transport Service: One of the most basic elements of logistics, with the goal to meet customer delivery time and location requirements.
#2 Storage Service: Focuses on maintaining the safety and quality of provided goods.
#3 Handling Service: Streamlines circulation of goods through implementation of professional machinery to reduce damage and increase efficiency.
#4 Packaging Service: Provides packaging solutions according to customer requirements, such as special protective materials for fragile or valuable goods.
#5 Circulation Processing: Provides product labels and production for manufacturers or retail customers.
#6 Information Processing: Analyzes logistical data for customers regularly to improve customer service. Information might include incoming and outgoing stock, return information, shipping data, customer opinions etc.
Advantages of Using Logistics Companies for SMEs
In addition to the above services, using logistics companies also enables the company to have added value, potentially saving considerable expenses and even generating profit!
#1 Solving Problems On-The-Go
Logistics companies work with great speed and adaptability, well-accustomed to meeting fluctuating enterprise demands. For example, if a retail store runs out of stock for a specific item, the store can place an order directly with a logistics center, which will in turn deliver the goods directly to the customer. This minimizes missing orders and encourages customer satisfaction.
#2 Allow Companies to Focus on Core Operations
Letting logistics companies take care of unfamiliar areas in logistics allows SMEs to work better with already limited manpower and resources, focusing on their core operations and concentrating resources on further business developments.
#3 Save Manpower and Equipment Costs
Since the logistics company is able to provide its own manpower and equipment, SMEs are able to save money that would be dedicated to these purchases, increasing their own budget.
#4 Access to the Latest Technology and Equipment
In efforts to constantly improve services, professional logistics companies will always invest in the best technology and equipment in comparison to that of ordinary enterprises. For example, logistics companies can provide real-time online inventory management and information, which is done with technology that would be hard for SMEs to access or develop themselves.
How Do I Choose the Right Logistics Company For Me?
In evaluating which logistics company is the right choice for you, use the following five factors:
- Execution: Logistics companies should be able to satisfy customer needs through sufficient delivery speed. This can be determined through the warehouse locations and density of delivery points.
- Credibility: Logistics companies should be able to complete deliveries punctually and ensure lack of damage to goods. This can be determined through the packaging processes the company undertakes and the efficiency of the loading/unloading process.
- Flexibility: Logistics companies should be able to tailor services according to the various different needs and budgets of enterprises.
- Delivery Time: Logistics companies should be able to meet specific enterprise needs and provide flexible access times to goods, for example depending on peak seasons or sudden increases in orders.
- Storage Lease Regulations/Agreements: Logistics companies should be able to adapt to specific regulations on storage and handling capacities according to each order or enterprise needs.
“Boxful Fulfillment” Offers Bespoke Logistical Management For You
Boxful Fulfillment is a new, integrated logistics company that is fully customer-oriented and tech-driven. We provide diverse and tailor-made services to meet all SME logistical needs. Although traditional logistics companies have some warehousing services, restrictions on implementation often inhibit smooth execution and cannot match the flexible and ever-changing shipment quantities that SMEs face.
Boxful Fulfillment provides flexible storage prices based only on the space that you actually use, eliminating unnecessary storage costs. Cloud inventory management also ensures convenient control and tracking over product delivery, increasing operational efficiency. Our special system also allows your customers to place orders directly with us, saving your time and allowing you to focus on business development. Offering bespoke logistics services, Boxful Fulfillment is the best logistics provider for SMEs. If you’d like to learn more about Boxful Fulfillment, feel free to reach out to one of our consultants!
Further readings： [Boxful Fulfillment Guide] How to Make Your Business More Efficient Through Effective Storage Management
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