Logistics are a vital part of any economy. However, the industry itself is often misunderstood. For instance, people think shipping and logistics are interchangeable terms. However, the shipping aspect of supply chains is only a small part of the larger logistics industry.
If you want to hire logistics services Fairfield CA for your business, continue reading to learn more about the industry. You may not realize how many ways your business can improve through intelligent integrations.
FTL and LTL Forwarding
Every part of your supply chain falls under the category of logistics. The most noticeable aspect is freight forwarding. Forwarding companies are considered fourth-party logistics because they bring the fourth element to your business transaction besides your customer and manufacturer. Shipments are regarded as full truckload (FTL) or less than truckload (LTL), depending on the volume you ship. You might utilize FTL to replenish your stock and then hire LTL services from another company to deliver products to your customers.
Inventory management can be taken over by a third party as well. This is especially important for online businesses that never see their products in person. Hiring a company to take over inventory planning can save you a lot of time and make you more money. They might provide you with data that helps you monitor your sales and restocking needs or physically store your inventory. There is not one inventory management solution for every company. You need to decide what suits your business best.
Third-party logistics cover a wide range of services. They might cover every aspect of your product fulfillment or serve as an assembly point for your products. Almost every business utilizes third-party logistics on some level. It is challenging to be a completely top-down company that covers every aspect of distribution internally. Usually, the best option is to use a combination of self-fulfillment and integrated solutions.