What is a logistic company?
Logistics companies help organizations plan, implement, and execute the movement and storage of products, materials, and services throughout the availability chain from the purpose of origin to the purpose of consumption. This might include transportation, shipping, warehousing, packaging, disposal, and security.
The rise of e-commerce and sophisticated , global supply chains have driven demand for these services. Different logistics companies will coordinate some or all of those processes, and adapt their offering to suit their clients’ needs.
How do logistics companies work?
A logistics company functions in two directions:
- Forward Direction – Distribution and delivery of products to buyers.
- Reverse Direction – Exchanging or replacement of defective, damaged, or wrong shipments.
Both these processes become easy if logistics are managed and controlled by an eCommerce company.
Working inside the Forward Direction
- Receiving the order on an eCommerce store
- Providing a payment option
- Preparing inventory
- Packaging the item
- Preparing its invoice
- Dispatching the order
- Handing over the parcel to the courier company
For an eCommerce company logistics within the forward direction involves receiving a web order, arranging for the item, packaging, preparing its invoice, arranging the payment, dispatching, and delivering the item to the customer’s doorstep. The time between receiving the order and its distribution depends on the supply of the fabric and therefore the location of the consignee. For specific locations, a separate delivery charge might be applicable
From the time of dispatch until delivery of a consignment, it’s the responsibility of the vendor to notify the precise location of a shipment to its respective consignee through tracking SMS or email notifications.
Payment collection is important for any eCommerce business owner, analogous to a retailer. A web retail company should have multiple payment options for a much better customer experience like debit/ credit cards, bank transfers, and COD (cash on delivery). In a country like India where buyers are easier with handling physical money, the COD option is of utmost significance.
Working in Reverse Direction
In spite of the simplest efforts the chances of incorrect or damaged shipments can’t be ruled out. In such situations an efficient reverse logistics is important. it’s the responsibility of logistics to require back these defective or damaged materials and replace them with proper order that satisfies the customer within an inexpensive time. A hassle-free exchange or replacement process goes an extended way in building trust between the customer and an eCommerce company.
Interpersonal Relationship
For any logistics or online retail company-customer relationship is critical. This relationship is established by delivery boys who are the face of an eCommerce company to buyers. Delivery boys should be behaved and patient with customers. Attention must be paid to complaints with assurances of rectifying them soon. it’s advisable to possess delivery boys with a cheerful disposition.
The logistics industry is becoming more and more technology-based with technology providing advantages in terms of cutting costs, increasing speed, and serving as a perfect platform for the fast-paced e-commerce industry. With logistics ripe for technology-driven disruption, Amazon, which leverages technology better than any of its peers, is probably going to disrupt the market by means of its logistics service. Amazon has made its logistics presence felt by getting into trucking and adding airplanes to serve air freight mainly for its own delivery requirements. The company’s push toward controlling the front, middle, and back-end logistics network to make sure that its parcels (Amazon Prime orders mainly) are delivered on time means its dependency on third-party logistics service providers will still decrease gradually.
This article describes Amazon’s entry into logistics and its capability to leverage technology to regulate the whole end-to-end delivery operations of its products. The article also discusses the likelihood of Amazon becoming one of the leading logistics’ service providers within the U.S. and its impact on longer-term logistics.
Are logistics companies profitable?
The logistics company is one among the foremost profitable transportation business to start out with moderate capital investment. the world of operation is vast. The logistics business is usually a specific business and implementation of a sophisticated process. On-demand platforms can help in managing the logistics company successfully and increasing the revenue manifold.
In addition to extend fill rates, the collaboration between partners is vital. Supply chain collaboration may be a critical thing about driving profitability within the future. consistent with McKinsey, companies that collaborate effectively across the availability chain have enjoyed dramatic reductions in inventories and costs, alongside improvements in speed, service levels, and customer satisfaction. Also, better control and provide chain visibility can have a game-changing impact on your profits and is extremely important in B2B.
In order to maximize the worth of the actions mentioned above, it’s necessary to form the switch to digital logistics. This offers a good range of advantages and opportunities which will have a positive impact on your business.
Who are the top 7 logistics companies?
DHL Supply Chain
DHL (Dalsey, Hillblom, and Lynn) is one of the most famous logistics companies worldwide. it had been founded in San Francisco, CA (U.S.) as a parcel, courier, and express delivery firm. Now, it’s a neighborhood of Deutsche Post DHL German Logistics company. DHL Supply Chain focuses on handling the processes of cataloging and shipping goods of their clients (mostly large companies) worldwide.
DHL operates in 120,000 cities from 220 countries. Moreover, it’s no but 84,000 branches, around 98,000 delivery vehicles, and 260 planes.
Three interesting facts about DHL Supply Chain:
- DHL Supply Chain may be a division of Deutsche Post AG and has 200,000 employees
- In 2017, the company’s annual revenue was around $68.3B
- Bayer Healthcare, Chrysler, Coty, Diageo, Campbell’s Soup, Rodan + Fields, Lego, and Nike are key customers of DHL Supply Chain
Branch: Singapore
C.H. Robinson Worldwide
This company operates as a 3PL (Third-Party logistics) and transportation services provider since 1905. As of 2017, the corporate had quite 300 branches and no but 15,100 employees. This firm is taken into account to be an expert in air and ocean freight forwarding and dedicated contract carriage. In 2014, C.H. Robinson managed to handle 14.3M shipments to 46,000 clients.
C.H. Robinson logistics company offers its services in North America, South America, Europe, Asia, and Oceania, has five headquarters over these regions (except for South America), and runs quite 300 offices.
Branch: New Zealand
Founded Year: 1989
Revenue: 10M-100M
Ryder Supply Chain Solutions
Ryder Supply Chain Solutions may be a part of Ryder System, Inc., which may be a large American supply chain management and transportation provider. As of 2017, Ryder’s revenue was estimated at $7.3B, while the supply chain segment is responsible for 26% of the revenue (about $1.6B). Moreover, the firm has quite 50,000 clients.
Ryder works in North America, South America, Europe (including the UK), and Asia. The headquarters is found in Miami, FL, the US. As of today, the corporate has around 10,000 drivers and quite 272,000 vehicles.
Branch: Singapore
Founded Year: 1995
Expeditors is one of the best logistics companies in the world
Expeditors International may be a U.S.-based freight-forwarding and logistics company. The firm is well-known for its unique compensation structure, which is sort of unusual for other players in the market. Basically, each of the firm’s branches is independent profit centers and therefore the primary compensation for the branch management group comes within the sort of incentive-based compensation calculated directly from the operating income of that branch.
The company operates in North America, South America, Europe (including the UK), Middle East, Africa, Asia, and Oceania. Overall, it delivers items in 103 countries. the main headquarters is found in Seattle, WA, the US.
Branch: Viet Nam
Founded Year: 2013
Revenue: >100M
Penske Logistics company
Penske Logistics focuses on providing large firms with modern and competent supply logistics solutions. The firm works with the most important companies and may offer versatile service packages, from warehouse management to transportation services.
Penske Logistics operates in additional than 340 locations worldwide, the US, Canada, China, Brazil, and Western European countries.
Branch: Malaysia
Lineage Logistics
Lineage Logistics is a relatively young yet already successful company, which has proven to be a reliable logistics and transportation services provider. They’re constantly expanding to form sure they’re in a position to supply logistics support to any company in need.
The company works in North America, Europe, and Asia. Its headquarters is found in Novi, MI, the US.
Three interesting facts about Lineage Logistics:
- Lineage Logistics was founded in 2012. However, in 2019, the corporate was ranked #9 logistics firm by net revenue, which is sort of impressive (taking under consideration its age, compared to its nearest competitors)
- As of 2018, the corporate had quite 7,200 employees
- In 2018, Lineage’s management reported that they began developing their first fully automated warehouse
Branch: Singapore
Founded Year: 2015
FedEx Logistics
FedEx is a famous American courier delivery services firm, which is thought for providing 3PL solutions for companies of all sizes. This company has always been on the list of top 20 logistics companies worldwide for the last 10 years. FedEx is in a position to deliver 3.5M items daily to no but 220 countries with the assistance of 57,000 vehicles and 640 aircraft.
FedEx works in additional than 220 countries. The company’s major headquarters is found in Memphis, TN, the US.
Three interesting facts about FedEx Logistics:
- As of 2018, no but 425,000 people were registered as FedEx workers
- In 2018, the corporate reported total assets of $52.3B
- In 2018, the corporate was ranked #8 logistics firm by internet revenue. However, in 2019, FedEx lost a step and was ranked #11.
Branch: Australia
Revenue: 10M-100M
Conclusion
The logistics firms are moving from a standard set-up to the mixing of IT and technology to their operations to scale back the prices incurred and to satisfy the service demands. the expansion of the Indian logistics sector depends much upon its soft infrastructures like education, training, and policy framework the maximum amount because of the hard infrastructure. To support India’s fast-paced economic process logistics industry is extremely essential. it’s estimated that the industry will still grow at a strong rate of 10-15 percent annually.
The global economic outlook of India is predicted to significantly improve as India Inc begins to tackle the economic downturn. With a replacement government, many policies are expected to be implemented, which can provide a fresh impetus to India’s growth engine, particularly within the corporate and little and medium enterprises (SME) sector, which successively will expand demand for the logistics sector.
With the implementation of GST, companies, which currently have small warehouses in several cities, can just found out a couple of in specific regions, following the hub-and-spoke model for freight movement from the warehouses to the various manufacturing plants, wholesale outlets, shops, and various POS. the expansion is backed by the boom within the e-commerce sector and expansionary policies of the FMCG firms.
