Distribution and Logistics Services
Many believe that these services are the same, but each has a different impact on your business. Logistics services usually include an automatic update your company’s inventory and electronically share essential data. Because these services require a substantial investment to implement, most transport companies that feature “Logistics” in their names do not offer true logistics services.
We currently offer Distribution Services only. These two examples describe the differences :
Distribution Services : A transport company imports and brings to its warehouse your order of 200 boxes of footwear. Your company sends instructions to ship from that warehouse the boxes numbered 1 to 25 to a customer in Dallas, boxes 26-56 to a customer in New York and boxes 57- 156 to a customer in Butte, MT. The remaining boxes stay in the warehouse until you sell them.
Your company benefits by not needing a warehouse and the related costs. You need, however, to confirm that the factory packs each box according to your detailed instructions. And you need to manually add and delete inventory in this warehouse to maintain accurate billing of customers and financial statements for your company.
Logistics Services : A transport company imports and brings to its warehouse your order of 200 boxes of footwear. All boxes are opened, the SKUs are confirmed , usually via a bar-code system, and they directly update your company’s computer software. This example is often called “pick-and-pack”.
You send instructions (pick-slips, for example) and the company scans each pair and packs each order according to your instructions. Your inventory is automatically reduced and your software can automatically invoice your customers.