Distributing goods and products to a growing number of consumers in domestic and global markets is increasingly challenging. Manufacturing companies are expanding, and the e-commerce industry is seeing rapid expansion, with companies barely having a chance to upscale their transport and logistic departments.
Among logistics services that are involved especially in the supply chain, distribution is typically outsourced by many companies. The delegation of these processes has proven that it allows many companies to focus on their mission, business core, and operations, allowing them to achieve better results.
With the South African economy returning to normal in a phased approach, it has become necessary for many businesses to consider the services of a transport and logistics company in South Africa.
What is a Transport and Logistics Company?
There are two main types of transport and logistics companies in the industry namely freight brokers and 3PLs. However, these terms are often used interchangeably, and most companies use both to cater for different needs.
These act as a go-between for shippers and carriers along with being non-asset bearing intermediaries. These brokers form a network that consists of thousands of small to medium carriers that offer customers a wide range of shipping options.
These are asset-bearing firms, meaning that they invest in their fleets as well as storage facilities. 3PLs offer individual services that include transportation or warehousing, but they more commonly provide a framework of services, or they run entire supply chains, tailored to the individual needs of the client.
Why should you consider hiring a Transport and Logistics company?
Transportation and logistics companies are geared for managing the movements of goods and products, which means that these companies know the most cost-effective, efficient, and streamlined way of doing so. Some organisations may manage most parts, or all, where supply chain logistics is concerned, but partnering with a professional transport and logistics company in South Africa can offer you a wide range of benefits, including:
- Expansion – businesses wishing to expand into new areas and emerging markets can use the unique, professional services of a transport and logistics company to access new markets and improve customer service.
- Cost and time-savings – the higher the efficiency of the business, the higher the likelihood of success. A third-party transportation and logistics company can help your business achieve this.
- Scalability – Depending on the services that you need, a transportation and logistics company can scale transport, space, and labour easily.
- Warehousing has become a complex and expensive venture for many businesses. Transportation and logistics companies can help to find appropriate and affordable storage space for goods and products.
- Packaging – Fulfilling customer orders within time requires an experienced workforce and the necessary equipment. Transportation and logistics companies can minimise any errors and delays, ensuring that the company can meet their customer demand and retain its reputation.
- Shipping as well as transportation – many manufacturers do not typically invest in a fleet of vehicles or drivers because it takes a lot of effort and capital. Transportation and logistics companies already have the necessary equipment and trained, licensed, and experienced personnel to do so.