Contract Logistics

Our warehousing and distribution solutions are specifically designed to ensure that our customers' products arrive as quickly, safely and smoothly as possible.

What is Contract Logistics?

Contract logistics refers to the subcontracting of resource management responsibilities from one organisation to another. Contract logistics firms specialise in a variety of tasks, including constructing buildings, warehousing, delivering and distributing products, processing orders and payments, tracking stock and even managing all other aspects of customer support.

 

A company may delegate its logistics and distribution operations to a third-party operator as part of a supply chain management service. According to the terms and conditions specified in the contract, the supplier oversees the entire supply chain, including the storage, delivery and transport of products. The aim of contract logistics is to make logistics and distribution operations more efficient, affordable and flexible.

How Does Contract Logistics Work?

This phrase has been adopted to characterise the sourcing, storage and transport processes from raw materials to the finished product, particularly for businesses operating in the manufacturing sector. Some enterprises manage their own logistics operations and oversee the different stages of the process through logistics managers . Others find it more efficient and economical to outsource all or part of the logistics management to specialised contract logistics companies.

 

Contract logistics companies must have knowledge of the business processes in the many sectors they serve, because each of them has different logistics requirements. For this reason, many contract logistics companies have been founded by former corporate logistics managers who have mastered a specific sector and have helpful contacts at every stage of the supply chain.

 

If we examine it in the form of items, contract logistics works as follows;

  • The supplier assesses the logistics and distribution needs of the customer, taking into account factors such as product type, volume, target market, delivery characteristics and budget.
  • A contract outlining the scope of services, delivery schedules, costs and other relevant terms and conditions is negotiated and signed by the client and the provider.
  • The service provider creates a logistics strategy using its own resources and capabilities, taking into account the customer's requirements. The supplier then implements the strategy by coordinating several logistics tasks and guaranteeing fast and precise delivery of the products.
  • The supplier ensures that all tasks are completed in accordance with the terms of the contract by continuously monitoring and reporting on the effectiveness of logistics operations. In addition, the service provider regularly informs the customer about the status of operations and any problems that may arise.
  • The service provider regularly evaluates the effectiveness of logistics operations and identifies areas for improvement. To maintain a high level of performance and customer satisfaction, this may require updating technology, changing processes or making adjustments to the logistics plan.
  • Overall, contract logistics was created to provide customers with a complete, end-to-end logistics solution that meets their specific requirements, reduces costs and increases productivity.

Flawless and Efficient Logistics Management

We are with you at every step of the way in logistics. You can contact us to benefit from our contract logistics services and obtain an efficiency plan by examining your supply chain.

Advantages of Contract Logistics

Cost savings, especially by avoiding the need to develop and maintain an expensive logistics infrastructure, is the most obvious advantage of contract logistics for a company. Instead of hiring labour with know-how to perform the work and paying for transport facilities, trucks, packaging materials and other related expenses, a business can save money by outsourcing the work. In addition, it can concentrate more on its core business.

Large contract logistics companies have the advantage of scale and can negotiate cheaper prices with suppliers than a small business can. Therefore, it may be more cost-effective to use a contract logistics company instead of managing these operations domestically. Briefly, we can list the advantages of contract logistics:

Better standards of service

Contract logistics providers strive to offer their customers a high level of service and co-operate closely with them to ensure that delivery deadlines are met and that goods arrive on time and in good condition.

Scalability

Contract logistics companies can provide scalable logistics solutions that can be modified to suit changing business requirements, such as seasonal shifts in demand or changes in market conditions.

Access to information and technology

Contract logistics providers bring a wealth of knowledge and experience in logistics and distribution to the table. They also have access to the latest technology that can be used to enhance operations.

Reduced risk and cost

By delegating logistics services, businesses transfer the risks and costs associated with such services to the contracted logistics provider who is responsible for them.

Kıta Logistics Contract Logistics Services

  • EDI Possibilities with client software
  • RFID-enabled Logistics Software
  • Optimisation of customer logistics costs
  • Inventory management
  • Optimisation of the entire supply chain
  • Sector specific consulting
  • Operational excellence
  • Reduced cycle and lead times
  • Process Development
  • Total supply chain visibility
  • SOPs, KPIs and process flow determined by the customer
  • Value-added services for time- and temperature-sensitive cargo

Inbound and Outbound Logistics

  • With value-added services for time- and temperature-sensitive cargo
  • Exact time services
  • Customs clearance services
  • Distribution services
  • Monitoring solutions in web environment
  • Transport network management
  • Vendor-based inventory management (VMI)
  • Quality control programmes
  • Sorting/Line Feeding
  • Procurement (Supplier and P.O. Management)

Distribution Centre Logistics

  • Various storage media - Private/Shared/Bonded
  • Cross-docking and consolidation
  • Incoming/storage/total/outgoing/documentation
  • Product completion
  • Value-added logistics
  • (Re)Packaging, (Re)Labelling, (Re)Stacking, Kitting
  • Order management, customs management,
  • Inventory management, customer service/call centre