What is a Logistics Company and What Do They Do

logistics company

In the present century, logistics companies are on the rise. They serve as a bridge between a producer and a consumer. To save time, money, and space, businesses nowadays opt for logistics companies to handle a part of their service. A logistic company helps organize and execute the transport and movement of the materials and products in the supply chain from the point of manufacture to the end of consumption. This includes but is not limited to shipping, packaging, disposal, warehousing, and transportation. 


Understand the concept of logistics? 

A logistic company, as written earlier, serves as a bridge. There are two main types of logistic companies, namely freight brokers and 3rd party logistics. Both of these companies are important as they serve distinct functions. Freight brokers focus on a single shipment where they connect a shipper with products to transport and the carrier who moves them. Thus, the freight brokers keep in touch with the owner-operators and coordinate individual shipments. On the other hand, a third-party logistic company is an asset-bearing company with its own storage facilities. Third-Party Logistics companies handle supply chains and provide services such as warehousing and transportation. 


Comprehend the functions?  

Logistic Company servers a variety of functions. Following are the significant functions that it performs:

  • Warehousing: In the modern world, storing products is increasingly difficult due to the huge costs involved; thus, logistics companies offer their clients space and store their products. These companies usually find an appropriate and affordable storage space in a prime location to store the goods. 
  • Security: When a company manufacturers products, one of the main concerns is to keep those products secure. Thus, when a logistics company stores the goods in their warehouses, they not only keep the products secure from burglars but also from any insects or pest attacks, rain, and moisture to keep the products fresh in their original form. 
  • Packaging: Once the manufacturers have sent their products to the warehouse, the logistics companies also cover packaging. They fulfill the orders from customers on time. Even if manufacturers do not store their products in the warehouse, they often send them to a logistics company for packaging. 
  • Shipping and Transportation: Usually, manufacturers do not have a fleet of vehicles to transport their goods. It also takes considerable efforts to hire drivers or get licensing and train the staff. Thus, to transport their goods from the manufacturer to the consumer, manufacturers hire logistics companies. Logistics companies have a range of vehicles varying in sizes, transporting the products to the customer’s doorstep. They are reliable and carry out the job on time with perfection. 


Why do you need a logistics helper? 

A logistics firm helps businesses ease their supply chain stream and take the unnecessary burden off the manufacturers. The manufacturing businesses not only save their time by having a logistics firm on their side but also money. Logistics companies are experts in what they do, so a new business doesn’t have to deal with headaches. They can simply enjoy a hassle-free process. In the present day, third-party logistics companies are increasingly popular due to their efficient work. When choosing a logistics firm, you must consider its expertise, efficiency, reliability, sustainability, safety, and prices. 


At BBF Logistics, we offer various logistics services to strengthen the supply chain and offer support and services to the manufacturers. We have a fleet of vehicles and a team of professionals making every shipment a dedicated journey. 

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Bintang Baru Forwarding , one of Malaysia’s leading Cross Border logistics solution service provider was founded back in 1993. From its humble beginning in year 1993 as a forwarding agent in Perlis, we have grown tremendously over the years.

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