If you are in the business of manufacturing or wholesaling goods, there will come a time when you need to move your products from one location to another. This isn’t always a simple process, however. You might need to transport your goods from a production facility to a warehouse, or vice versa. Alternatively, you could have finished products that require shipping directly to customers. These processes might seem simple on the surface; after all, you probably have established suppliers and customers with which you regularly do business. And both businesses are likely local, which means moving products between them shouldn’t be very difficult. However, logistical challenges can arise at any time and place no matter how seemingly convenient it may seem. This article will explore some of the advantages a logistics service company offers when transporting goods as well as some pitfalls that may arise if you handle the logistics yourself instead of contracting an outside company specializing in this field.
What is a Logistics Service Company?
A logistics service company can be broken down into three main segments: transportation, warehousing, and inventory management. If your goods need to be moved from one location to another, this company can help you determine the best method or modes of transportation depending on factors like weight, size, and if the goods are temperature sensitive. They can also assist you in finding an appropriate mode of conveyance, like a truck or train, as well as schedule a pickup and delivery date. As for warehousing, this is the process of storing your goods once they have been delivered to their final destination. Inventory management is the record keeping associated with keeping track of how much of each product you have on hand as well as where they are in the supply chain.
Transportation
If you’re moving goods from one location to another, but they aren’t yours, it’s best to hire a logistics company to complete the task. After all, if you own the goods you are shipping, you have everything needed to complete the task yourself—a truck, a trailer, and possibly a few helpers. However, if the goods aren’t yours, you don’t have their necessary equipment. Therefore, transporting someone else’s goods is inherently more difficult. This is due to the fact that you don’t have the necessary paperwork and insurance policies to complete the task legally. If you don’t hire an outside company to handle the task, you risk getting caught with contraband. Not only will this result in hefty fines, it could also put your reputation in jeopardy.
Warehousing
If you are receiving large quantities of goods, you probably have a large warehouse of your own. However, if you have a small business, you may not have the space required to store large quantities of product. This is yet another instance where it’s best to hire a logistics company. This company can store your goods in their warehouse until you need them, which you can easily access using a pick-and-drop system. This way, your inventory doesn’t become cluttered with unnecessary items and you can easily see which products you need the most. Additionally, this company can also transport your goods to retail stores or directly to customers.
Inventory Management
Another major advantage of hiring a logistics service company is that they can keep track of your inventory. If you are the one responsible for inventory management, it can easily become a full-time job. After all, you need to track all incoming and outgoing goods as well as customer orders. With several employees, this is easy enough to do. However, if you are a one-man show, this task is likely overwhelming. To begin with, you may not have the proper computer program to keep track of inventory. This means you will have to manually enter everything, which will take a lot of time. But even if you have the right software, you will still need to be available to manually enter the data because this software won’t help you if you have an incoming customer order that you need to fill. A logistics company, on the other hand, will keep track of all incoming and outgoing goods so you don’t have to worry about it.
Conclusion
As you can see, there are many advantages to hiring a logistics service company. You don’t have to worry about handling transportation, warehousing, and inventory management. This is especially beneficial if you have a small business or need to focus your attention elsewhere. Be sure to do some research to find the company that best serves your needs and can meet all your requirements.
Friends Cargo Service 