Logistics companies in UAE assist organizations to plan, implement, and facilitate the movement and storage of products, building materials, and services throughout the supply chain from the point of origin to the point of use. This may include transportation, transportation, storage, packaging, disposal, and security.
The rise of e-commerce and the complexity of global supply chains have led to the demand for these services. Multiple logistics companies in Dubai and other states of UAE like Abu Dhabi, Sharjah etc. will synchronize some or all of these tasks, and change their contribution to suit the needs of their customers.
Freight Brokers and Third-party Logistics Companies (3PL)
There are two main types of companies used: freight brokers and 3PLs. While these terms are often used consistently, and many organizations use both to satisfy different needs, there is an important distinction.
Freight Brokers
Freight brokers work as a companion for shippers and carriers. Often, retailers are non-asset intermediaries – they build a network of thousands of small to medium carriers to offer their clients multiple shipping options, as well as more for larger carriers. The great advantage of using a freight broker is that it provides exporters with a very high level of flexibility.
3PLs ( Third Party Logistics Companies )
Third party logistics companies are cargo based organizations, which means they tend to invest in storage facilities. While providing single services such as travel or storage, Third party logistics companies (3PLs) offer the most service package or manage all supply chains, tailored to the needs of their customers. Third party logistics companies (3PLs) develop long-term relationships wlogistics companyith their customers which proves useful when shipping capacity is strong and the delivery of supply chains is extremely difficult.
Why Partner with a Logistics Company?
Logistics companies have a lot of experience in managing inventory, which means they will probably know the most efficient, least expensive, and systematic way to do that. While some organizations manage certain, or all, parts of their delivery services, partnering with a technology company offers many benefits including:
- warehousing – With several factors to consider, warehousing is becoming more complex and expensive. Logistics companies can take responsibility for finding the right, inexpensive storage location in the right place and save their client the pressure and time to do so on their own.
- Packing – Accurately fulfilling customer orders on time is a service that requires experienced staff and professional equipment. As they have already invested in the required technology and staffing, the companies involved can reduce errors and delays to ensure that the organization meets the needs of the customers and maintains its reputation.
- Transportation – Manufacturers will not normally invest in their own vehicles and drivers. It requires a great deal of exertion and cost to get the essential licenses to do as such and to prepare staff, time, and cash that might have been exceptionally spent somewhere else. Logistics companies as of now have these administrations set up, which implies they will be grounded and dependable.
- Flexibility – Logistics companies have the ability to increase or decrease, reducing the risk of delays if the customer demands a sudden rise. They also have the resources and skills to adapt to the process and adjust shipping routes or routes in the event of a disruption to supply.
- Technology – Logistics companies have access to the state-of-the-art technology to create a series of digital feeds and ultimately drive greater efficiency and reliability. For example, integrated transport management software enables the automation of upload schedules. Other commonly used technologies include tracking software, Internet of Things (IoT) devices, and remote RFID tracking.
6 key factors before partnering with a logistics company
To partner with a logistics company you should have to consider the following six factors:
- Professionalism – Not all logistics companies will be experts in all aspects of asset management. Organizations should look at priorities, e.g. packing, shipping, etc. then find a right logistics company in UAE that best meets their needs.
- Price – Organizations should find out if the price of the logistics company is obvious. Are there any hidden costs and is the quotation provided the same as the promised service level?
- Efficiency – Can a logistics company commit to the continuation of orders within a certain period of time? It doesn’t help to work with a company that can provide the services your clients have grown to expect.
- Reliability – Particularly when going into a drawn out relationship with Third party logistics companies (3PLs), organizations should track down a dependable, reliable partner. Background inspections and market research can help ensure that the logistics company will deliver on its promises.
- Sustainability – Sustainability of consumer goods is increasingly a priority for organizations around the world, expanding partnerships with the companies involved.
- Health and Safety – It is very important to work with a logistics company that prioritizes the well-being of its employees and complies with health and safety regulations. This should include comprehensive policy, adequate training, and third-party research.
