Logistics companies handle the transportation and storage of supplies, services, and data for the supply chain. They are responsible for the set up and execution between the origin location and end location. An important part in initiating the relationship between the origin and final location and ensuring the costs are reasonable, is generally handled by Brokerage firms. Logistics companies generally handle co packing, re packing, shipping and warehousing. Fun fact: Logistics started during wartime: with the end goal of getting supplies and goods to the troops as fast as possible.
The global demand for the movement of supplies has made for a very successful 3PL and Brokerage cooperation.
3PL can also include:
- Transportation
- Storage
- Warehousing
- Disposal
- Packing and shipping of Beer, Wine, Spirits
- Cross Docking
- Trans Loading
Logistics and Brokerage in a Global Economy
To start with, logistics companies control the movement and storage of goods, services, or information within a supply chain. Their strengths lie in the planning and implementation of delivery between the points of origin and final destination.
Brokerage firms can play an essential part in extending the relationships needed to move products cost-effectively throughout the supply chain.
Depending on their specific expertise, logistics companies and their partners manage some or all of these supply chain functions, depending on a client’s logistical needs.
Logistics is a term with its roots embedded in the military. During wartime, supplying troops with related equipment and associated supplies in a timely fashion is a function of logistics. With the rise of consumerism in the 1950’s, logistics evolved to serve more complex supply chains growing nationally.
This process of coordinating the movement of supplies and materials has now become globalized. in today’s world of business, particularly in the movement of physical goods, the supply chain is a vital part day-to-day operations.
A comprehensive supply model may include:
- transportation
- shipping
- receiving
- storage
- management of all or one of these functions
Additionally, logistics operations may also apply to:
- information
- transportation
- inventory
- warehousing
- material handling
- packaging
- disposal
- and security needs
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