Logistics Services

Logistics services provide a variety of warehousing, transportation, and supply chain management services. They manage contract and public warehouses, ship high volumes of small orders, facilitate cross-docking, and consolidate less-than-truckload (LTL) shipments to reduce operating costs. Logistics services also track shipments and verify their on-time delivery. Companies that provide warehouse management services combine building maintenance and expense management skills with an understanding of material handling requirements. Typically, these logistics services offer inbound services such as receiving and inspection. They may also handle damage management and freight claims. Some logistic services have warehouses with freezers and refrigerators for food products, medical supplies, and other perishable goods. Others handle hazardous and radioactive (HAZRAD) shipments or use automated transportation management software (ATMS) that meets regulatory requirements.

Logistics services that perform outbound operations may consolidate LTL shipments into full truckload (TL) shipments, or repackage a customer’s products for delivery by parcel or rail. Typically, these logistics services use specialized software with features such as barcode management, dispatching, fleet management, inventory forecasting, parts planning, interfaces with accounting packages and fuel cards, global positioning system (GPS) tracking, and Internet shipment tracking. Third-party (3P) logistics services may provide freight-bill auditing and payment; data collection and benchmarking; carrier negotiation and contract management; and monitoring, tracking, and reporting. Radio frequency identification (RFID), retail compliance labeling, and serial number tracking are also commonly available. Logistics services that offer customized product solutions can perform custom, display, or light assembly; shrink wrapping, kitting or re-cartoning; and heating sealing, custom labeling, and packaging operations.

Companies that provide logistics services often belong to professional associations such as the Council of Supply Chain Management Professionals (CSCMP), a non-profit organization. The American Purchasing Society maintains two certifications for buyers and purchasing professionals: Certified Purchasing Professional (CPP) and Certified Professional Purchasing Manager (CPPM). The Health Industry Group Purchasing Association (HIGPA) is a broad-based health industry trade association that represents group purchasing organizations. The International Organization for Standards (ISO) Technical Committee 104 (freight containers) and Joint ISO/IEC technical committee (JTC) 1 Subcommittee 31 (automatic identification and data capture techniques) also maintains standards which are applicable to logistics services.

• Case Study: TNT Logistics Services
  TNT had problems with injuries due to manual lifting with the associated sick leave and rehabilitation costs. As part of a worldwide Health & Safety Program, the challenge was to find a lifting aid...
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• Aircraft Expenses Dominate DOD Spending
  Since the terrorist attacks of Sept. 11, 2001, fixed-wing and other aircraft expenses have dominated Pentagon spending, according to an Aerospace Daily computer analysis of expense trends throughout...
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• PBL Grows and Changes
  Performance-based logistics (PBL) travels under a number of passports, including availability contracting, sustainment and through-life support. This traveler is getting around more widely, in the...
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