What Are Logistic Services? Types, Benefits, and Examples
Logistics services benefit businesses of all sizes. Learn about the types, benefits, and examples of logistics services that businesses are using now!
Easily manage your in-house delivery routing with Circuit for Teams.
Logistics services relate to managing the flow of goods from the point of origin to the point of consumption. Simple as that.
Now, let's talk about the good stuff.
In this article, we'll dive into the different types of logistics services, their benefits, and some examples of companies that use them to their advantage.
So, whether you're a small business owner looking to expand your reach or a delivery team manager seeking to optimize your operations, this article has the info to help.
- Third-party logistics (3PL) handles outsourcing processes like warehousing, inventory management, and order fulfillment to a third-party logistics provider.
- Freight forwarding makes sure freight shipments get from the manufacturer to the fulfillment center using different modes of transportation.
- Warehouse services provide storage, packing, and shipping of products to customers. Warehouses can be integrated with Circuit for Teams to access real-time inventory levels and automate order fulfillment processes.
- Port services include a jetty, pilotage, harbor tug, port yard, warehousing, vessel provision, berthing, and navigation services, and are essential for ocean freight shipping.
- Stevedoring and cargo handling services handle loading and unloading goods from ships at the port, including cargo handling, lashing, and heavy lifting.
- Courier shipping is like a VIP logistics service given by a logistics company for small orders and is perfect for when you need your package to get somewhere fast and safe.
- TMS Logistics software services provide end-to-end supply chain visibility, automate tasks, and improve efficiencies in transportation management.
- In-house logistics involve a company's internal management of their logistics operations, including managing their own transportation, warehousing, and order fulfillment.
8 Types of logistics services
Now, let's get into the meat of this article. Here are the eight types of logistics services that we'll be discussing in detail:
- Third-party logistics
- Freight forwarding
- Warehouse services
- Port services
- Stevedoring and cargo handling
- Courier shipping
- TMS Logistics software services
- In-house logistics
Third-party logistics (3PL) refers to outsourcing processes like warehousing, inventory management, and order fulfillment to a third-party logistics provider.
Small businesses and eCommerce companies are all about it these days because it saves them time to focus on other aspects of their business.
But if you work with a 3PL, watch out for any added costs and the potential for losing control over your logistics processes.
When you use Circuit for Teams delivery management software, you get the power to manage your own shipping and delivery without the hassle of dealing with a third-party logistics provider.
You have total control over your logistics operations and can save some cash in the process.
And with Circuit for Teams product updates, you can streamline your delivery operations even more, copy stops between routes, and edit optimized routes.
Circuit for Teams lets you handle your logistics and still enjoy the benefits of working with a logistics service provider.
Freight forwarding is like being the boss of a shipment. These companies make sure freight shipments get from the manufacturer to the fulfillment center.
Part of that means figuring out if they will use a truck, train, or plane to deliver shipments.
Truck or train is usually the go-to for domestic shipments, whether a full-truckload (FTL freight) or less-than-truckload (LTL freight) shipment. Air freight is perfect for high-value or time-sensitive products.
Things get more complicated when you send things across borders and have to handle customs paperwork and duties. You might even need to use a container ship to get everything where it needs to go.
If you're feeling overwhelmed, you can either work with a freight forwarding company directly or hook up with a logistics service to take care of everything for you.
Warehouses are a huge deal in logistics. All types of businesses, especially those in eCommerce, need warehouses to store their products.
Warehouse services cover everything from getting the products to storing them and even packing and shipping them to customers.
Warehouses are like the secret weapon for eCommerce fulfillment solutions. Retailers can stash their inventory in a warehouse and have it sent out to customers as soon as they make an order.
This saves businesses a ton of cash on shipping fees and guarantees their products are delivered on time.
Circuit for Teams can seamlessly integrate with warehouse management systems (WMS), allowing you to access real-time inventory levels and automate order fulfillment processes.
This reduction in manual entry results in faster and more accurate order processing, allowing businesses to deliver products to customers quickly and efficiently.
Circuit for Teams can also give greater visibility into warehouse operations, so you can better optimize inventory management and reduce storage costs.
Port services are an essential component of ocean freight shipping. As a full-range logistics solutions service, a port services company will have its own port facilities or partnerships with different ports worldwide.
Port services include a jetty, pilotage, harbor tug, port yard, warehousing, vessel provision, berthing, and navigation services.
These services help handle, unload, and ship clients' products once they arrive at the port.
In addition, port services offer an inspection of the goods upon arrival and departure, adding another level of quality control and catching damaged products. Customs assistance, chartering, and stevedoring services are also available.
Stevedoring and cargo handling
Stevedoring and cargo handling services are critical components of the supply chain for shippers. They handle loading and unloading goods from ships at the port, including cargo handling, lashing, and heavy lifting.
Terminals also offer storage space for import and export cargo, making them a key part of the shipping industry.
These basic functions are vital for safe and efficient transportation service, making sure the ship stays balanced and everything is stowed safely.
Courier shipping is like a VIP logistics service given by a logistics company for small orders. It's perfect for when you need your package to get somewhere fast and safe.
Sure, it can be a bit more expensive than regular shipping or postal services, but you're paying for the convenience and speed. A courier service will pick up your package and deliver it directly to the recipient in no time.
Delivery companies must consider their profit margins and fulfillment services when pricing courier shipping. It's not the best option for large or bulky items.
Consider sending those shipments by freight. And regular postal services should do the trick for letters or small packages.
Circuit for Teams helps businesses with courier shipping by providing advanced order tracking and other logistics tools for faster and more efficient deliveries.
With Circuit for Teams, you can easily manage your own courier shipments and track them in real time to make sure they reach their destination quickly and safely.
You can even optimize your delivery routes with Circuit for Teams delivery optimization capabilities to use your time and resources most efficiently.
While courier shipping may be a bit more expensive than regular shipping or postal services, Circuit for Teams can make the most of this VIP logistics service and offer your customers a premium delivery experience.
So, if you need your package to get somewhere fast and safe, Circuit for Teams is the delivery management software to make it happen.
TMS Logistics software services
Transportation Management System (TMS) logistics software is a real-time game changer for supply chain management. TMS gives you the tools to plan, execute, and optimize all your transportation activities.
The software performs this logistics optimization by crunching your data on pricing, route alternatives, and other supply chain KPIs, so you can improve bottom-line profits and minimize headaches.
It's a slick system that makes life easier for everyone involved, including shippers, carriers, warehouse managers, freight brokers, and supply chain managers.
And with a strong focus on compliance and documentation, TMS gives end-to-end solutions for getting your goods from A to B in the best way possible.
Looking to optimize your transportation and delivery routes?
Circuit for Teams can integrate with TMS logistics software to help you plan and execute optimized delivery routes. By automating your route planning, Circuit for Teams can save you time and help you make more efficient deliveries.
Circuit for Teams also offers advanced tracking technology, so you can keep your customers updated on their deliveries in real time.
In-house logistics is when a company handles its own logistical needs, from planning to communication.
It's a great way to have full control over the flow of products and save some cash, but it needs a lot of investment in personnel and resources.
Companies with their own warehouses or distribution services usually use in-house logistics.
Plus, it can be a real eco-friendly move to improve sustainability, reducing the impact of shipping on the environment.
Circuit for Teams lets you take control of your in-house logistics.
The software makes managing inventory, tracking deliveries, and optimizing your supply chain a breeze. All the data you need to improve your logistics is available right at your fingertips.
And with advanced analytics and reporting features from Circuit for Teams, you can get valuable insights into your logistics operations. This helps you make smart decisions based on data, so you can run your business like a boss.
The 7 R’s of logistics
If you want your logistics process to succeed, you have to know how to get everything right. And I mean everything — from product design to the final delivery location.
We're gonna explore the seven key R's of logistics — the essential principles to make sure your product goes to the right customer, in the right condition, at the right time, and at the right place.
- Right product. Make sure your logistics services and solutions make delivery operations easier for your business and better for your customers.
- Right customer. Do your research to understand your customers and implement the best logistics strategy to deliver shipments to them.
- Right price. Set the right price for your delivery services, so you can make a profit and keep your business running.
- Right quantity. Produce and ship the right amount of product, known as your economic order quantity (EOQ), to match demand, save money, and be more efficient.
- Right condition. Deliver your products safely and with top-notch quality until they reach your customers.
- Right time. Deliver products on time to keep your customers happy and your business thriving.
- Right place. Use a great delivery system with location tracking to make sure your product ends up in the right place.
Benefits of using logistics services
Logistics services have many business-related benefits, including:
You can scale your operations up or down with logistics services to match demand or market conditions.
You don't have to worry about growing too fast or too slow — you can find the perfect pace for your business.
Circuit for Teams can help you grow your business without getting bogged down in logistics.
As your business grows, you can easily add new drivers, vehicles, and delivery routes to your Circuit for Teams account. No need to stress about how you'll manage it all.
This scalable delivery solution means you can keep up with increased demand without worrying about managing logistics operations manually. Focus on growing and let Circuit for Teams do the rest.
Increased customer satisfaction
Logistics service providers are experts in getting products to customers promptly and efficiently, greatly improving customer satisfaction.
Give your customers fast, reliable, and consistent deliveries using logistics services and they'll be stoked to shop with you again and again!
Circuit for Teams can further improve your delivery process and increase customer satisfaction.
Use this delivery management software to optimize your routes, save time, and make lightning-fast deliveries.
Circuit for Teams also gives real-time tracking updates, so your customers can stay informed about their deliveries and know when to expect them. You can set up automated delivery notifications, keeping your customers in the loop every step of the way.
All of these features work together to help you provide the best delivery experience possible and make your customers smile from ear to ear.
Logistics services can help you save money by streamlining your supply chain, reducing inventory costs, and optimizing your transportation routes.
Outsourcing logistics can also reduce the need for your business to invest in expensive equipment and technology.
Circuit for Teams delivery optimization software can help you save money by optimizing your delivery routes and reducing fuel consumption.
You'll get cool features like route optimization, delivery tracking, and automated dispatch that will help you cut down on unnecessary driving and streamline your operations.
The result? You can deliver more packages in less time while being a friend to the planet.
Overall, Circuit for Teams can help you save money and operate more efficiently while still giving top-notch customer service.
By outsourcing your logistics, you can free up your time to focus on other important aspects of your business.
Plus, you can enjoy faster shipping times, which means happier customers and more sales!
For example, Circuit for Teams delivery software offers automated route planning and optimization, reducing the time and effort you have to spend manually planning delivery routes.
Circuit for Teams can also give you real-time tracking and alerts. Dispatchers can easily make quick routing adjustments after unexpected changes or delays.
These optimization technologies save delivery companies valuable time, improving customer satisfaction and overall business efficiency.
Access to greater logistics networks
Using logistics services means you'll have access to a broader network of carriers and distribution centers.
That means you can reach more customers in more places and expand your business.
Take advantage of industry expertise
Logistics service providers are experts in their field, with the know-how to optimize your supply chain and help you avoid costly mistakes.
When you let the pros handle it, your business can leverage its expertise in the current logistics industry, improve logistics operations, and stay ahead of the competition.
For example, using Circuit for Teams delivery management software can help you gain an edge with sweet features like:
- Optimized routes
- Real-time tracking
- Automated dispatching
This combination of edge-sharpeners means faster deliveries, fewer mistakes, and happier customers, all while saving you time and money.
3 Examples of logistics services
Here are three simple examples of common businesses using logistics services:
- Smaller couriers. Last-mile delivery businesses and other small courier companies often partner with third-party logistics (3PL) services to step up their delivery game. Teaming up with a 3PL means they can reach a wider network of carriers, use advanced tracking technologies, and take advantage of other logistics tools to make deliveries faster and smoother.
- Local shops. Small shops offering local deliveries to serve their customers can hook up with a port service or a stevedoring and cargo handling company to manage big incoming product shipments. These companies can make sure their goods are handled safely, moved efficiently, and delivered to the right spot on time.
- ECommerce newbies. Lots of new online businesses use a mix of their own logistics and 3PL services to manage their supply chain and shipping and delivery processes. That often means hooking up with a freight forwarding company to handle imports and exports, getting a warehouse service to store and organize their inventory, or using a TMS logistics software service to optimize their transportation strategy.
Find out how Circuit for Teams can optimize your delivery team
Alright, that's a wrap on our guide about logistics services and how they can benefit your delivery business!
Before we sign off, let's talk about Circuit for Teams — the real MVP of last-mile delivery management.
With the latest product updates from Circuit for Teams, businesses can copy stops between routes, offer customers dynamic or fixed delivery windows, manage deliveries across multiple depots, edit optimized routes, and much more.
And let's remember the new feature that lets businesses include customer service details on tracking links — talk about improving customer satisfaction!
It’s never been easier to manage a team of delivery drivers with Circuit for Teams. It's like having a personal assistant that knows all about logistics.
If you're a business owner looking to streamline your last-mile delivery operations, do yourself a favor and try Circuit for Teams free today.
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