Logistics Distribution Services

Written by Kathleen Gagne
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In the freight industry, logistics distribution services include such factors as organizing shipments from vendors through distribution warehouses, coordinating truckers, arranging rates, and meeting other supply chain needs for shippers. The processes are fairly loosely organized. In some cases, the logistics services are part of an overall contract so that the broker might even be involved in auditing freight bills and payments.

The Business of Order

Huge quantities of goods are shipped throughout the world every single day. The potential for errors in billing are enormous. Logistics experts are the ones who match invoices to shipments, carriers to shippers, and provide load tracking through call-ins or GPS systems. The whole point of utilizing their services is to minimize expense at every step of the process from the time the load is on the trucks.

Compliance may also be an issue when the load is comprised of regulated materials or perishable goods. Audits are very important as is awareness of the exact location of regulated goods. Contracts between logistics services providers, shippers, and carriers must be air tight to avoid problems relating to disputes or damaged goods. The broker/logistics expert is the key to successful transactions.

At every point in the transportation of goods, a logistics services provider's goal is to make sure that the process runs smoothly with minimal loss or extra costs to the shipper and carrier. For doing this, the broker is usually paid out of the difference between what the shipper pays and the broker receives. The services he provides are very important to the successful outcome of the entire supply chain procedure.


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