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Dalor Logistics, Inc.
6005 West Ryan Road
Franklin, WI 53132
(414) 421-8900
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What A Logistics Provider Does
Logistics providers play a massive role in modern freight distribution. The term refers to any company that moves freight, cargo and goods on behalf of a client that needs to find a freight solution, and in doing so fills in a gap in the that company’s supply chain. Logistics providers are used by almost every industry and are employed by businesses of all sizes. The term encompasses large-scale trucking freight companies, individual owner-operators, and everyone in between.

In recent years small-scaled expedited freight services have been on the increase, due in part to the rise in the number of small businesses having infrequent need for available warehouse space or freight trucking. More and more businesses are also consolidating their inbound and outbound freight for the purposes of sourcing and distribution; although this might seem like it would mean less motor freight transport would be required, in fact it puts freight trucking within reach of a broader constituency of businesses and has led to growth in the logistics industry. Many businesses liaise with logistics providers through the medium of a freight broker or freight agent.

The exact role of a logistics provider in a business’s supply chain can vary. Some providers offer purely shipping and distribution; they find transportation assets and provide trucks and drivers according to a schedule imposed by the client, taking motor freight to and from a particular destination. These sorts of providers only perform the most basic logistic functions – they find warehouses to store goods, they distribute the freight, and they supply ‘pick and pack’ services, which involves both warehouse and motor truck freight and often means having a load reworked and/or sorting the client’s freight out from a consolidated shipment.

However most providers offer additional services and interface themselves with the supply chain of the client in a more multi-layered way. Often ‘pick and pack’ includes a more complete freight distribution service, including the delivery of invoices and meeting specific repackaging requirements. Many 3PL-providers also provide specialist technical and security requirements for trucking and another forms of freight distribution – they supply climate-controlled reefers for transporting low-temperature freight, for example, or security technologies for freight that is high-value or a theft risk. Cross-docking and the transfer of motor freight on to other means of conveyance is another common service supplied by logistics providers – particularly in cases where the client needs to ship overseas or consolidate with other businesses who are moving freight.

The most closely-involved logistics providers will effectively take over the supply chain of the client and oversee all of that client’s needs for inbound and outbound freight, distribution, consolidation and logistics in general. Usually these sorts of 3PL providers have relatively few clients, although their contacts and knowledge of the freight trucking and logistics industries can help bring the same economies of scale.
 
 


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