Logistics services represent a step beyond third-party logistics (3PL).
Logistics services are an essential part of supply chain management.
3PL logistics can shift the needle on your ability to meet demand, deliver products to customers and increase profit margins.
Logistics services constitute the value chain that connects the producer to the consumer. Here is an overview of logistics services.
Integrated logistics services
Logistics services include all elements of the supply chain, from the factory to the end customer.
They include transportation from the manufacturer to the warehouse, storage, order fulfillment and delivery to the end customer.
A 3PL in Italy and around the world can facilitate all or part of the logistics as part of order fulfillment.
Logistics services include:
- Transport from the factory to the logistics warehouse.
- Warehousing, storage, management and order fulfillment.
- Supply of packaging.
- Outbound shipments and delivery of orders to customers, with or without cash on delivery service (COD).
- Returns management
This is a simplified overview of logistics services.
When you dig deeper, there are different options, choices and dynamics in each of these stages of the Supply Chain.
You can choose different types of logistics services to meet the needs of your e-commerce, retail, omnichannel company.
Here are some of the most common types of managed logistics services, otherwise known as 4PL services, used by e-commerce, retail, wholesale, omnichannel companies.
Shipping of goods
When you place a purchase order with your manufacturer, wholesale supplier, or distributor, logistics is involved in getting the goods from the point of origin to the logistics warehouse.
Freight forwarding is the process of managing a shipment from the manufacturer to the fulfillment center.
Domestic freight forwarding includes arranging trucking, rail shipping or air freight. Full truckload (FTL) or less than truckload (LTL) transportation of bulky or heavy items is almost always done by rail or truck. Shippers may use air freight for orders requiring fast shipping or high-value products.
International freight forwarding and logistics management solutions involve additional layers of complexity, including customs clearance at both ends of the journey, duties and multimodal transportation.
International goods generally travel via container ships in FCL or LCL (less than container load) shipments or, for lighter or higher-value products, via air freight. THE
Electronics manufacturers also commonly use air freight to transport their goods.
Container ships carry everything from automotive parts to clothing.
As the supply chain becomes increasingly global, international freight shipping is something that many e-commerce companies need.
You can work directly with a shipping company to handle paperwork and organize the transportation of your goods.
Or you can use a logistics provider to handle international freight shipments along with other 4PL services.
The option you choose will depend, at least in part, on the size of your company.
A 4PL or shipping company can bundle your LCL shipments with those of other companies to save you money on shipping. The advantage of using a logistics provider is that the 4PL aggregates a large volume of shipments, so the shippers it partners with are incentivized to provide better service.
Inventory management
Inventory management and related logistics flows are fundamental for every successful e-commerce, retail, omnichannel business. Inventory management can also be a hassle. The best way to alleviate the problem is to automate inventory management as much as possible.
A logistics provider may have an inventory management solution that integrates with warehousing services.
For example, eShop Logistic Srl’s inventory management system for Fulfillment services in Italy and around the world offers inventory visibility, stock projections and data on order trends.
An inventory management solution from your logistics provider can provide data to help you generate inventory forecasts and improve replenishment processes.
The net result of better inventory management is fewer backorders and greater profitability.
Third party logistics
Third party logistics is a generic service for a series of logistics services.
Most 3PL service companies will provide the basics of e-commerce fulfillment: receiving, warehousing, order fulfillment, picking and packing, and outbound shipping.
A 3PL can also provide additional logistics services, including:
Returns (reverse logistics)
Kitting and assembly
FTL and LTL shipping
For e-commerce companies that outsource order fulfillment, logistics companies become valuable business partners. At ESL we provide all the services listed above and go above and beyond. We want our logistics services to drive the success of your e-commerce.
Examples of logistics services
It is easier to understand how logistics services work by looking at an example. Let’s start with a hypothetical company that needs logistics services for fashion products, footwear, cosmetics, dietary products, food supplements, dry food products such as coffee, in short, a Consumer Products company.
This sells items online to Italian consumers. Fashion items, footwear, cosmetics, diet products, nutritional supplements, dry food products such as coffee are produced in China, so the company needs help with logistics to transport the products to its third-party logistics company in Italy.
Its shipments weigh at least 2 kg.
Supply chain management from manufacturer to logistics center
The logistics service provider evaluates its shipping options and finds the right freight forwarder to ship the items by sea or air.
The freight forwarder ensures that the documentation meets local border control requirements before the furniture container is loaded onto the ship in China.
He also ensures that the container has cargo insurance.
If the container is not full, the shipper could save money by consolidating the shipment with other compatible goods.
A few weeks later, when the container ship reaches the port in Italy, the freight forwarder once again makes sure that the documents are in order so that the furniture can clear customs.
After the container arrives, a 4PL service might consist of splitting or splitting the container into LTL shipments for distribution to multiple fulfillment centers.
The final step for the freight forwarder is to organize the transportation of the trucks to the logistics warehouse. Since the customer uses a logistics provider, the supply chain manager has a single point of contact throughout the process. Additionally, the 4PL handled any issues that arose during the process of shipping the goods.
Inventory management and fulfillment
In the warehouse, the customer benefits from multiple logistics services. Its 3PL stores goods and ships wholesale orders to retailers using LTL freight shipping. Customer deliveries weighing more than 2kg are also good candidates for LTL shipping if in large quantities and on pallets. The shipping company can deliver the items directly to the customer’s home. For shipments, the ecommerce logistics company can use the shipping services UPS, GLS, BRT and FedEx.
Better yet, the 4PL inventory management system helps you stay on top of your inventory and avoid stockouts.
The system analyzes order performance, helping the customer know when their inventory reaches the reorder point.
By leveraging eShop Logistic Srl’s full range of logistics services, the company frees up its staff to focus on higher-level tasks to expand the business and increase profits. Outsourcing part of its operations was an excellent choice for this online, retail or omnichannel retailer.
Summary of frequently asked questions about logistics services
What are logistics services?
To define logistics services, they include all elements of the supply chain, from the factory to the end customer. Logistics services include transportation from the manufacturer to the logistics warehouse, which includes storage and order fulfillment, and finally outbound shipping and delivery of orders to customers.
What is the meaning of logistics service provider?
Logistics services go beyond typical 3PL services, so logistics providers are often referred to as 4PL services. Logistics providers are a critical part of supply chain management as they can move the needle in meeting demand and delivering products to customers. Expect to increase your profit margins when you implement logistics services.
What is a logistics company?
A logistics company is a company that offers logistics services that go well beyond 3PL and include:
Product/goods/inventory transportation service from the manufacturer to the logistics warehouse.
Warehousing and order fulfillment services.
Outbound shipping services and delivery directly to customers.
eShop Logistic’s logistics services can help you optimize your supply chain management
www.eshoplogistic.com is one of the main 3PL companies in Italy. We provide fast, accurate and guaranteed order fulfillment for our satisfied customers.
But it’s not enough. We are always looking for new and better ways to serve our customers. That’s why we’ve created an inventory management system that gives you visibility and insights into your inventory planning. And we are working with shipping partners to offer additional logistics services. We are moving into the 7PL space, combining world-class 3PL services with 4PL supply chain management.
As a world-class logistics company, our goal is to optimize logistics for our customers by collaborating with partners up and down the supply chain. You will benefit from greater supply chain visibility. This collaboration is a great way to find efficiencies that can save you money. Plus, you can have a single point of contact for all your logistics services instead of juggling multiple providers.
