When faced with the question “what is a logistics company?” most people will immediately express various opinions. But their opinion is not necessarily true, because most people’s understanding of logistics companies is only basic.
But that’s not a bad thing, because not everyone should understand logistics companies in depth. That’s the logistics company’s job. Many companies are experienced in logistics and understand the intricacies of logistics well.
In this article, we will discuss logistics companies, what they do and why your company should work with a logistics company.
What is a Logistics Company?
In a simple sense, a logistics company is a company that helps other companies to move goods from ‘Point A’ to ‘Point B’. It can be in the form of products, services, or information. Everything that needs to be transported from one location to another can be done by a logistics company.
The most common example of a logistics company you will often see is a courier. The main function of a courier is to move goods from one place to another.
In a broad sense, a logistics company is a company that helps other companies to plan, implement and execute any movement from one point to another.
Some logistics companies only assist in certain parts of the logistics process, such as shipping goods to customers. However, large logistics companies with complete facilities and equipment can take on all parts of the logistics process.
For example, SCN Logistics Group can provide integrated logistics services, meaning that all of your company’s logistics needs can be handled by SCN Logistics Group. Of course, it is very easy for you, instead of having to contact and negotiate with several logistics companies, simply by contacting SCN Logistics Group, your company’s logistics needs have been met.
What Does Logistics Company Do?
As we discussed above, a logistics company is a company that helps the movement of goods, information, or services from one place to another. There are many types of logistics companies, such as port service providers, port loading and unloading companies, freight forwarding companies, and third-party logistics.
1. Port Service Provider Company.
Logistics companies that provide port services usually manage ports for logistics activities. For example, SCN Logistics Group has port facilities with an area of 58 hectares in Batam. It has 6 jetties of various capacities and can serve various types of ships up to a maximum weight of 40,000 DWT.
Port services include jetty, pilotage & harbor tug, yard, warehouse, vessel provision, berthing, navigation.
2. Stevedoring & Cargo Handling Company.
Companies that provide stevedoring and cargo handling services. As a port service provider company, SCN logistics Group also provides stevedoring and cargo handling services in the port area.
Stevedoring and cargo handling services include Stevedoring, cargo handling, lashing – unlashing, heavy lifting, and manpower supply.
3. Freight Forwarding Company.
Freight forwarding companies act as an intermediary between the shipping company and the final destination of the goods. With different modes of transportation such as sea transportation, land transportation, and air transportation.
With more than 35 years of experience providing logistics services for well-known companies, SCN Logistics Group also provides complete freight forwarding services.
Freight forwarding services include sea freight FCL & LCL, sea freight breakbulk, air freight, trucking, warehousing, and customs clearance.
4. Third-Party Logistics.
Third-party logistics companies are asset-bearing companies meaning they own their warehouses, processes, and vehicles. Sometimes a third-party logistics company will offer a single service such as transportation or warehousing management. However, one of the main selling points of 3PL companies is that they can offer a variety of integrated logistics services. Such as planning your company’s logistics needs, and carrying out all logistics activities using their assets.
SCN Logistics Group provides third-party logistics services which include: Warehouse management, transportation & delivery, distribution center, project cargo, and shore base services.
Why Companies Should Use Logistics Company Services?
There are many reasons to partner with a logistics service provider company to meet your company’s logistics needs. Here we will describe some of the main reasons:
1. Warehousing and Storage.
Companies that carry out the production process will need a temporary place to store their goods or raw materials before use. In the eCommerce business, sellers need a place to store goods before they are shipped to customers.
To answer these needs, logistics companies offer warehousing, storage, and inventory management services. Even third-party logistics companies such as SCN Logistics Group can provide a much larger range of services.
Managing a warehouse is expensive and will add to the burden on your business if you directly manage it independently. Therefore, logistics company warehousing services are the best choice. In addition to lower costs, your goods will also be handled by professional and certified personnel.
2. Packaging / Packaging.
Handling the packaging of customer orders well requires experience and a large workforce. Of course, it depends on the number of orders you receive each day. Using the services of a logistics company, a company does not have to do product packaging independently.
Some logistics companies can provide packaging services on top of standard services such as warehousing and shipping. Logistics companies have invested in the staff and processes necessary to fulfill orders in a better way, and of course, the logistics experience is invaluable.
3. Transportation and Shipping.
Perhaps the main reason for a company to work with a logistics company is to transport and deliver goods to customers. Logistics companies offer shipping and transportation as one of their main services. This means that if you need to move goods, services, or information from one place to another, a logistics company can do it.
Advantages of Using a Logistics Company
As we discussed earlier, working with a logistics company will provide many benefits for your company. Here are some common benefits:
1. Reduce Costs.
Logistics companies usually have an extensive network, they can get a better price for your company’s needs. In addition, logistics companies have a greater influence on shipping, so they can reduce costs in your company.
The demand for a product is not always the same, there must be fluctuation. Sometimes demand increases rapidly, but there are also times when the demand for a product decreases. A good logistics company knows this and can help you match your stock with demand.
3. Focus On Quality.
Instead of spending a lot of time and investing in logistics, your company can focus more on innovation and product quality improvement. Third-party logistics companies can take over the distribution process and inventory management completely.
4. Reducing Delay.
Delays are one of the most difficult problems to deal with if your company manages logistics independently. However, the 3PL company responsible for managing your company’s logistics activities will look for alternative ways to reduce the risk of delays. With the experience they already have, logistics activities will run better.
5. Reduce Stress.
If your company ships goods, equipment, or supplies internationally, many different types of paperwork will be required, and managing these types of documents can be a nightmare for some. However, an experienced logistics company will make the document management process more organized and faster.
Logistics Company in Batam – Indonesia
SCN Logistics Group is a logistics company that provides a variety of integrated logistics services. A strategic location, complete facilities & equipment as well as comprehensive services, make SCN Logistics able to meet your company’s logistics needs.
SCN Logistics Group has more than 35 years of experience providing logistics services to well-known companies, completing projects perfectly, and providing satisfaction to customers. Contact our team for more information.