What do logistics companies do?

An important cog in the machine that drives domestic and international economies alike, logistics companies come in many different shapes and sizes, and each specialise in different areas. Ultimately, they all have the same objective – to facilitate the transportation and storage of goods for other businesses. 

From international air freight services and freight forwarding to warehousing and distribution solutions, the term ‘logistics’ covers such a wide range of services, meaning it can sometimes be difficult to understand exactly what companies in this industry offer. With this in mind, here at Freightline Carriers, we thought we’d put together this handy guide to let you know what logistics companies actually do, what services they offer, and how they usually operate. 

What does a logistics company do?

Essentially, logistics companies are hired by businesses to plan, implement and manage the transportation and storage of products, goods and raw materials. A key part of the supply chain of almost all goods-based industries, these companies may specialise in different aspects of logistics, with some focusing on haulage, for example, while others may be warehousing experts. However, some larger logistics companies, such as Freightline Carriers, are experienced in all areas of the field and can adapt to the needs of clients. 

While it’s true that some businesses manage certain aspects of their supply chain themselves, logistics companies are there to partner with them and take control of any areas of logistics a business may require help with. This means logistics companies essentially operate as a third-party conduit that help to facilitate some or all of the following areas of the supply chain process: 

Domestic transportation and distribution

It’s common for goods-based businesses to not invest in their own fleet of vehicles and drivers. This is often expensive and time-consuming, so instead, many organisations choose to outsource transportation, shipping and distribution processes to logistics companies. Companies such as Freightline Carriers already have the vehicles, staff and experience in place, meaning slotting into your existing supply chain is typically quick, seamless and a good way to cut internal costs. This option is much cheaper than investing in the in-house logistical infrastructure and technology that would be required. Courier services are usually also available for smaller loads that require urgent delivery. 

International shipping

If your business is only based in one country but involves trading with businesses and customers located overseas, organising your own overseas logistics is a tough and expensive challenge. Logistics companies that specialise in international freight forwarding take this burden out of your hands, using their specialist expertise and professional links across the globe to provide quick, efficient and cost-effective overseas shipping solutions. These services will typically involve ensuring customs and border checks run smoothly and returns are properly managed. 

Warehousing and storage 

An often overlooked aspect of logistics, in today’s modern age of online shopping, next day delivery and fast fashion, storing goods using strategically planned warehousing systems has become increasingly complex and expensive. Logistics companies can take control of a business’ warehousing operations, finding affordable, well-located and size-appropriate storage spaces, and overseeing the ongoing management of these locations and how they will interconnect with shipping and distribution services. 

Inventory management

Most logistics companies can provide professional inventory management solutions as part of their warehouse management services.. This could involve devising and implementing a new strategy to make the inventory management processes of a business more coherent in order to become more efficient. These services are especially helpful if your business needs to store potentially hazardous or oversized products or materials, and require specialist help. 

How does a logistics company work?

Logistics is a highly lucrative industry. With the ability to partner with practically any business, whether that’s in the retail, pharmaceuticals or events industry, or the automotive, hospitality or catering sectors. Any business that requires goods, materials or products transporting from one location to another, or simply needs professional help with storing and distributing, are potential clients for logistics companies. 

However, in order to operate effectively, and successfully offer the services discussed above to their clients, these companies must be strong in three key areas: 

1. They must have the necessary experience, both in terms of management and more junior staff, to successfully plan, implement and manage the transportation and storage of goods for their clients.
2. They must have the professional links and networking skills needed to forge and maintain strong relationships with other logistics companies and individuals located both domestically and abroad, knowing they can be called on if needed. This is especially important if the company specialises in overseas shipping solutions.
3. They must have the hardware needed to successfully carry out the services they advertise. This includes the fleet of specialised vehicles, professional machinery and cutting edge technology needed to fulfil their client’s requirements. 

As an industry-leading logistics company, here at Freightline Carriers, we work hard to ensure we excel in all three of these areas. This has enabled us to successfully work closely with a wide and diverse portfolio of clients, offering everything from road and international air freight services to specialist warehousing and distribution solutions.