How does a Logistics Company work?

A Logistics Company usually controls and streamlines the transfer of goods and services from one destination to another. They do so by planning, implementing, storing, and transferring goods and services. With the advancement of the E-Commerce sector in the country, the logistics sector has witnessed a massive boom over the years.

 

According to recent market research, the Indian Logistics Market is expected to be valued at $435.43 billion in 2023. In this blog, we will analyse the role of Logistics in India and how do they plan and execute the entire delivery process of goods and services in India.

What exactly is Logistics? 

Logistics is an essential part of supply chain management that involves an efficient forward and reverse supply chain of goods and services from one destination to another. The primary goal of an efficient logistics company is to meet the daily client requirements

 

Trains, trucks, planes, and even the vehicle with which you commute to work fall under logistics. There are different large to medium size logistics companies in India. While some offer entire storage to delivery, others offer one or two individual services.

Types of Logistics Companies?

There are multiple types of logistics companies that allow a smooth transition of goods and services. Some of them include:

➢    Freight Companies

The freight companies allow a smooth transition of goods from Point X to Point Y. These companies are generally small and carry international freight or offer global shipment delivery. These companies also specialize in delivery through sea or air freight.

➢    Third-Party Logistics Companies

Known as the 3PL logistics companies, these companies specialize in providing all or some part of the logistics for their clients. They could only supply your transportation and warehousing needs or they may be fully integrated with your business model.

➢    Freight Forwarders

Freight forwarders do not offer freight transportation. Besides, they offer a moderator inside the supply chain. In addition, they work for established networks to optimize transport solutions for your logistics business.

 

Besides, they also handle all the documentation related to import and export. These companies allow you to save both time and money in a short duration.

➢    Carriers

Carriers offer critical transportation services for companies in every industry. They include rail, trucking, cargo, and sea/ocean freight companies.

How does a Logistics Company Work?

 

A logistics company plays a critical role in the transportation and distribution of goods from one location to another. It ensures the efficient movement of products through the entire supply chain, including procurement, storage, transportation, and delivery.

 

Here's a breakdown of how a logistics company typically works:

 

1. Supply Chain Management: A logistics company begins by working closely with its clients to understand their supply chain requirements. This involves identifying the products, their origin, destination, quantity, and desired delivery timelines. The logistics company collaborates with suppliers, manufacturers, and distributors to establish an effective supply chain network.

 

2. Procurement and Inventory Management: The logistics company assists in procuring goods from suppliers or manufacturers, ensuring the availability of the required inventory. It manages inventory levels, tracks stock movement, and optimizes storage facilities to prevent stockouts or overstocking.

 

3. Warehousing and Storage: The logistics company operates warehouses or distribution centres strategically located to facilitate efficient storage and distribution of goods. These facilities are equipped with modern infrastructure, such as racking systems, inventory management software, and security measures, to ensure proper handling and storage of goods.

 

4. Order Processing: When a customer places an order, the logistics company receives the order details, verifies the availability of the products in stock, and processes the order for fulfilment. This includes order confirmation, picking the products from the warehouse, and preparing them for shipment.

 

5. Transportation: The logistics company coordinates the transportation of goods from the warehouse to the designated destinations. It selects the appropriate mode of transportation based on factors such as the nature of the goods, distance, urgency, and cost considerations. This may involve utilizing various modes of transportation, including trucks, ships, aeroplanes, or railways.

Conclusion

Overall, a logistics company acts as a crucial intermediary, coordinating and managing the movement of goods across the supply chain. By leveraging its expertise, infrastructure, and technology, it aims to optimise processes, reduce costs, and deliver goods safely and efficiently to their destinations.

 

Movin is one of the top logistics companies in India that offers day-definite and time-definite delivery services for your B2B business. With Movin, you get a consistent, predictable, and reliable shipping experience.

Get in touch with Movin today.