When running a successful business, dependable logistics services are crucial. What does this mean? And most of all, how can a business optimise its logistics process and aspects? In our blog you will get your questions answered, from the definition of logistics and its benefits to the types of services and ways of selecting the right logistics partner.
What are logistics services?
Logistics services involve the planning, implementation, and control of the efficient movement and storage of goods, services, and information within the supply chain. These services include:
Transportation from the factory to the warehouse fulfilment centre
Warehousing services and order fulfilment
Order delivery and outbound shipping
Now that we have a brief overview of what logistics services encompass, let’s discuss about the most common types and jump into a few examples to help you better understand the whole process.
Types of logistics services
Basic logistics services include key functions like transportation, warehousing, inventory management, and distribution, forming the backbone of a smooth supply chain. The most common types of logistics solutions provided are:
Freight shipping
Freight shipping is a very important service that involves the transportation of goods by sea, rail, or road. Businesses need to decide on the transportation method based on cost, speed, and the type of the cargo. Rail freight is typically the most used and economical option for land transport, and road freight, supporting both short and long-distance deliveries. For these types of freight shipping services businesses can also get tracking, insurance and specialised handling.
Warehousing
Warehousing is another type of logistics service that provides storage solutions for goods awaiting processing, distribution, or sale. Some businesses require advanced warehousing solutions that go beyond basic storage by offering temperature-controlled environments, inventory management systems, and order fulfilment. Meanwhile others are looking to reduce operational costs using warehouse management which focuses on optimising the space and resources needed to store products while ensuring quick access when required for shipping.
Reverse logistics
Reverse logistics includes product returns, repairs, recycling, or refurbishing. Efficient reverse logistics is important for customer satisfaction, particularly for e-commerce companies offering easy returns and exchanges. Businesses with strong reverse logistics systems can reduce waste and manage product life cycles more effectively.
Inventory management
Inventory management systems are a very important logistics service because they allow businesses to track stock levels in real time, estimate demand and reorder goods automatically. If you want to minimise the risk of stockouts or overstocking, improve cash flow and reduce the cost of warehousing excess inventory. It also ensures that goods are available to meet demand, contributing to better customer satisfaction.
Customs clearance
Customs clearance services help with the clearance of goods across international borders. A customs broker ensures that all necessary documentation is in place, calculates duties and taxes, and helps businesses comply with various international regulations. By managing these complex processes, customs brokers prevent costly delays and fines, enabling goods to move smoothly through customs. This service is essential for businesses that operate globally and need to navigate the regulatory frameworks of different countries.
Part loads (LCL, LTL, Groupage)
Part load services cater to businesses that do not have enough cargo to fill an entire container or truck. In these cases, businesses can opt for LCL or LTL shipping, where their goods are consolidated with other shipments.
Groupage services also fall under this category, allowing smaller shipments to be grouped together for more efficient transport. These options are cost-effective and allow businesses to ship smaller quantities without the high cost of booking full containers or trucks. Part load services are ideal for companies with varying shipment volumes or those starting new markets.
LCL (Less than container load): Commonly used for sea freight, LCL allows businesses to share a container with other shippers, paying only for the space they use. It’s a cost-effective option for smaller shipments that do not require a full container.
LTL (Less than truckload): For land transport, LTL works similarly to LCL, enabling businesses to share truck space with other shipments. It reduces costs while still providing reliable transport across regions.
Groupage: Groupage services allow businesses to consolidate multiple smaller shipments into one, typically across land or sea routes. It’s an efficient way to transport goods in bulk while saving costs by sharing space and resources.
Full loads (FCL, FTL)
Full load services are ideal for businesses with large volumes of goods that can fill an entire container or truck. Full container load (FCL) and full truckload (FTL) shipments offer direct, efficient transport with less handling and fewer stops, reducing the risk of damage and shortening transit times. These services are more cost-effective for larger shipments because the whole container or truck is reserved for a single shipper.
FCL (Full container load): FCL shipping involves reserving an entire container for a single shipment, usually for international sea freight. This method ensures that the shipper has exclusive use of the container, reducing the risk of damage from handling other goods and speeding up the overall transit time.
FTL (Full truckload): FTL is used for road transport and involves booking an entire truck for a shipment. Like FCL, FTL provides more security for goods and faster delivery times, as the truck moves directly from origin to destination without multiple stops for other cargo.
Choosing the right logistics services for your business
Selecting the right logistics services is essential for optimising a supply chain, reducing costs, and keeping the operations running smoothly. Whether you need efficient freight shipping, or tailored part-loads you should consider these key factors:
Industry experience & expertise: Choose a provider with a strong track record in the industry you activate.
Range of services offered: Ensure they provide transportation, warehousing, inventory management, and last-mile delivery.
Technology & tracking capabilities: Look for real-time tracking, automation, and data analytics.
Network & geographic coverage: Ensure they have a strong distribution network in the regions you target.
Cost structure & contract terms: Compare pricing, hidden fees, and contract flexibility.
Scalability & flexibility: The provider should adapt to business growth and seasonal changes.
Reputation & customer support: Check reviews, request references, and assess their service quality.
As one of the largest logistics companies in the EU and across the UK, DFDS helps business to optimise their supply chain, reduce costs, and enhance customer satisfaction. We can help you streamline the logistics process so you can focus on other important aspects of the business. Contact us today and let’s discuss ways of optimising your supply chain.
