Contract Transportation, also called contract logistics, is the process of transferring the mobility from raw materials to consumption for producer or distributor companies and the work to be done with logistics enterprises. Contract Transportation is the assignment of resource management tasks to a third-party company.
- Design and planning of supply chains
- Design of the facilities,
- Transportation and distribution of goods,
- Processing of orders and collection of payments,
- Handles activities such as managing inventory and even providing certain aspects of customer service.
Scope of Contract Transportation
Logistics management is an important component of the profitability and overall success of many companies. Some companies manage their logistics, while others find it more efficient to hire private contract logistics companies to manage their own logistics. Contract logistics companies need to develop a deep understanding of how different industries work to best manage the logistics of various companies.
For businesses operating at an international level, logistics management is a basic element of creating a sustainable competitive advantage. For this reason, many contract logistics companies are founded by former logistics managers who already have a good understanding of not only the sector in which they work, but also where they can best place their contracts.