What is contract logistics?

There are many complicated definitions of this business model, but in short, contract logistics is simply based on outsourcing the day-to-day logistics to an external operator.

As part of the service, we offer a wide range of activities-from acceptance of goods, through carrying out work related to assembly, packaging, to sending products to an intermediary or final customer.

Contract logistics is sometimes used by manufacturing companies, but also by stores (also from the e-commerce sector).

Is it worth using contract logistics?

It is difficult to say whether contract logistics is the ideal solution for any business, but it brings with it a number of advantages that can convince entrepreneurs to outsource logistics. How can we benefit from this?

First of all, when outsourcing logistics to an external company (such as JMP logistics), we receive a comprehensive service. We get the knowledge and experience of specialists who have their own warehouse space, adapted to the needs of specific products. The customer does not need to invest in maintaining its own warehouse and expanding the infrastructure for storage and management of goods in the warehouse. Proper security, placement on the shelves, as well as subsequent assembly, shipping, and even handling returns are on our side.

Contract logistics-JMP logistics has not only a place, but also a trained team that works efficiently and quickly to carry out all tasks related to the maintenance of products in the warehouse. Our employees are also equipped with the right equipment, which significantly improves daily work, helps to eliminate bottlenecks and eliminate problematic downtime. Thanks to this, all orders are executed on time, and the number of possible errors is much less.

Professional tools and computer software (WMS) affect the speed of operation, and also allows you to significantly optimize the cost and time of execution of individual orders.

Cooperation with us therefore allows for a real reduction in the cost of storage, infrastructure and operation of warehouses, while at the same time reducing the process of assembling and shipping products to customers.

Contract logistics – JMP Logistics

In addition to the storage itself, the service includes many additional activities related to the handling of goods, including:

  • cross-docking (transshipments),
  • completion of orders,
  • pre-packing and co-packing,
  • supply chain design and planning,
  • transport and distribution
  • support for returns and complaints,
  • inventory management.

Companies that opt for this type of activity receive a comprehensive service, relieving them of all responsibility for their extensive logistics and warehousing activities. This allows you to focus on production or, in the case of a store, on marketing activities that increase sales, rather than investing resources and capital in building a warehouse from scratch.

Professional logistics is a strong foundation for the effective conduct of even a large business. However, outsourcing also works for smaller entities. It allows you to significantly reduce the cost and time of execution of orders and comprehensive customer service.

Efficient warehouse is a business card of the company, which affects its positive reception by customers. This, in turn, allows you to build social awareness of the brand and trust among supporters who are happy to make purchases, knowing that they will always arrive on time.

Contract logistics is therefore a convenient and proven solution in which we operate, we have a reliable knowledge of what to do to improve the storage of all our products. For many entrepreneurs, this can be an ideal solution.

Cost of Lost benefit and Contract Logistics

Cost of lost benefit is a term derived from economics. It means that by focusing our resources on one thing, we are not able to use the same resources (e.g. time) to achieve something else.

This concept fits very strongly into the existence of contract logistics on the Polish market. Evaluation of management models, economics and even everyday life of the grey Smith at the turn of the last years had a great impact on the improvement of household life.
Stereotypes ” I have a manufacturing plant, so I need to have transport, warehouse logistics.,.”they go to the Lamus.

My professional life gave me tangible examples of this, thanks to my work at the university, I was able to interest young people who were starting businesses in the world. The keys that we solved together showed in a tangible way that outsourcing of services is a necessary condition in order to be noticed in the market and to compete boldly in it.

From this point, I would also like to thank my students that together we were able to discover and learn about the reality around us. I am always happy to take part in solutions that can improve the situation or solve the current problem. My college career is over, but my contact remains open.

To sum up “cost of lost benefit and contract logistics”.

– Specializing in production or trade, or not better to focus on what we were called to and the environment in the form of logistics, transport…. leave it to specialists who will do it better, cheaper, faster ?

I often meet with her followers and I am pleased that more and more often these words are spoken with understanding.

Cargo hotel

Our modern warehouse is adapted for APT pallets and for non-APT loads.

IT system supports managing entrusted loads, it constructed to let every person who takes part at the process knows the goods status at the warehouse. It let’s to plan distribution easily.

Transshipment – a form of optimization of the transport process.

From the analysis of the market we can conclude that companies that have in view of cost optimization are looking for different types of solutions. In transport, the service of transhipment can be dictated by several conditions:

  • Parcel consolidation is the process of combining smaller parcels sent in a similar direction into one larger one, so that transport is more economical and efficient. This is usually done in transhipment depots.

This cost-effective solution primarily saves space in the warehouse and in the vehicle transporting the goods, and therefore brings financial benefits: more space = more shipments that can be handled. Consolidation also allows for much faster logistical support than could be the case for single small packages. So it is definitely worth using this method of forwarding goods or use the services of a professional company that deals with the consolidation of transported shipments.

  • Another carrier.

If they are able to tranship, they may tranship to another means of transport. This option has its economic justification in cases of:

– the carrier who receives the cargo does not need to have permits for CIS countries. He reloads it and hands it over to a licensed carrier. Loading goods from Poland eliminates the need to have permits for third countries and the close distance from the border allows you to save on transportation and each party is satisfied,

– the scheduling of transhipment at the end of the driver’s work to another (vacated) means of transport ensures continuity of deliveries.

Knowing why to do this is undoubtedly necessary to decide whether it will pay off for us..?
The second question is what and how to do it…
In this I see the advantage of our company JMP, not only do we know what but thanks to a wide range of transporters we can perform the most complex transhipment operations.

Temporary storage warehouse

We have the ability to reload and store loads in our warehouse, as a place recognized by the Customs Office.

The cargo entering the territory of the EU at each border point is subject to the transit procedure (T1, TIR etc.). For various reasons (suspension of payment of customs duties (customs duty, excise duty, VAT), lack of documents, transhipment, further sale… etc.) the goods are not always immediately reported for final clearance / release for free circulation.

Thanks to our solution, customers can store their loads with us from the time the customs procedures are completed.

Place recognized

For other customs-approved goods which are in the process of transport, not intended for storage. Customs procedures can be performed on the means of transport. For this purpose, we have created and made available a recognized place (designated by the customs authorities).

Thanks to this solution, the customer (owner, carrier or Customs Agency) can make a customs declaration of an import or export in the so-called simplified procedure at this point. As a result, there is no need to transport loaded vehicles to the premises of the Customs Office.