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Contract Logistics: The Definition and Benefits

Logistics is a substantial and strategic process in business operations. It plays a pivotal role in boosting the company’s financial performance. Logistics involves the management of goods and materials (procurement, storage, maintenance) and their distribution to the end user.


Many companies entrust logistics services to manage their operations. The time-consuming process and layered steps in logistics are the primary reasons these businesses eventually rely on third parties. Entrusting third parties to be responsible for a company’s logistics is called contract logistics.


What Is Contract Logistics?

Simply put, contract logistics is a strategic move to delegate varied operational tasks, such as resource management and distribution, to third parties.


A logistics company provides various services as a third party, including supply chain planning, facility design, storage, transportation, order processing, inventory management, and customer services.


By signing a logistics contract, companies can get multiple benefits. Outsourcing infrastructure, specifically storage, fleets, and employees, to a third-party provider allows a company to manage its financial resources efficiently.


See also: Things to Keep in Mind When Using a Shipping Agency


4 Benefits of Contract Logistics


Prioritizing the Company’s Business Operation

With contract logistics, companies can focus on their core competencies. They can prioritize essential tasks, such as enhancing the supply chain flow, increasing workforce performance, and many more.


Greater Flexibility

Employing a logistics provider allows companies to easily adapt to the changing market trends. In the event of changes in demand or business expansion, companies can respond with significant agility by adjusting transportation capacity and storage.


Excellent Quality Service

Contract logistics is the ideal solution for providing excellent quality service. A logistics provider generally has a deeper understanding of logistics and a broad knowledge of supply chain management.


Integration with the Latest Technology

A logistics company continuously improves its technology to keep up with the ever-evolving business markets. It strives to ensure that every logistics process is more effective and efficient.


See also: NLE Remains the Government’s Focus for 2024 Economic Growth


Make those benefits yours by collaborating with a professional and experienced logistics partner.


One of the well-known, reputable logistics companies in Indonesia is SERA Logistics (SELOG).


As part of PT Serasi Autoraya (SERA) business line, as well as Astra Group, it is widely known as one of the leading transportation and logistics service providers in Indonesia that offers a one-stop solution service.


SELOG is one of Indonesia’s leading logistics companies that serves the needs of customers in end-to-end logistics through a series of diverse services.


See also: Understanding LCL: A Key Term in Freight Shipping


Through more than 35 years of continuous innovation, SELOG supports customer needs for logistics services, including contract logistics.


For further information on SELOG, particularly contract logistics services, go to this page https://www.sera.astra.co.id/id/page/35/perusahaan-logistik-pengiriman-cargo


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