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What is a logistics company?

Updated: 9/25/2023
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8y ago

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A logistics company is a company that participates, in some way, in the movement of goods along a supply chain (for example, from manufacturer to distributor to retailer). Examples of logistics companies include companies that physically move the goods such trucking companies (like Schneider or YRC Freight), package delivery companies (FedEx or UPS), and railroads (CSX). It would also include companies that store the goods in warehouses. There are also companies that simply manage the logistics or who consult with large companies on their logistics process.

Although the name itself is relatively new, logistics has been around as long as humans have traded goods. When the Bronze Age metal workers needed copper and tin from distant lands to create bronze, trade routes were established and became an important part of the development of many cultures.

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A logistics company is a third-party provider that offers a range of services to businesses that need help with the movement, storage, and delivery of goods. The primary function of a logistics company is to manage and optimize supply chain activities, which can include transportation, warehousing, distribution, inventory management, and other related activities.

Logistics companies can be specialized in specific industries or regions, and they often have expertise in managing complex supply chains. They work with multiple clients and can provide customized solutions to meet their specific needs. Some logistics companies specialize in specific services such as freight forwarding, customs brokerage, or last-mile delivery.

Logistics companies play an important role in the global economy, helping businesses of all sizes manage their supply chains more efficiently and cost-effectively. They provide a range of value-added services such as supply chain analysis, process improvement, and risk management, which can help businesses improve their operations and increase their competitiveness.

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