What Does a Logistics Company Do?

A logistics company helps a business with planning, implementing and executing the storage and transportation of goods. Most logistics companies provide services throughout the supply chain, after production until consumption. The services include but are not limited to packaging, storage, delivery and assembling assistance. Logistics companies have robust supply chain management systems with the automation of warehouse stocking and real-time RFID tracking of goods.

Advantages of Hiring a Logistics Company for Your SME

Many businesses rely on third-party logistics services providers for outsourcing their logistics and supply chain. More than 60% of warehousing and 70% of local transportation were outsourced in 2020, indicating certain advantages of hiring a logistics company.

Cost Savings

Outsourcing logistics may bring additional costs however, the cost of purchasing warehouses and trucks, hiring labor and installation of systems requires a large capital investment and therefore more costly for SMEs. Since outsourcing is charged based on what is needed, fixed costs become variable costs and therefore incur fewer expenses.

Time Savings

Third-party logistics and supply chain companies take over the management and maintenance of warehousing and transportation. Since SMEs have the advantage of being closer to their customers, they can understand their needs and wants. By outsourcing the supply chain process to a logistics company, the management can save time and focus on delivering customer satisfaction.

Efficiency from Expertise

Logistics companies have knowledge and expertise in secured warehousing locations and a vast network of delivery routes. It enables them to be efficient in the entire supply chain process. Delegation of deliveries to third party logistics companies will prevent any mishaps from occurring in the future.

Ease of Expansion

Companies need to increase stock capacities and deliveries in order to meet increased customer demands or diversify into other locations when expanding. Investments for warehouses and transportation can be capital intensive which may require external funding. Hiring a logistics company would allow for supply chain optimization due to its economies of scale, making the expansion process easier for SMEs.

Get Nationwide Deliveries with JRN Express

We are one of the leading LTL freight and box truck shipping companies in the US as we have dedicated routes and reliable networks across North America. Our low-cost supply chain solutions can cater to your SMEs with nationwide deliveries. We guarantee that your deliveries reach their destinations on time without any dents or damages. Contact us now to ensure supply chain optimization for your business.