Contract logistics refers to the long-term assumption of complex logistical service packages by forwarding agents or parcel services. In essence, it is the outsourcing of logistics services to a third company.
The contract logistics companies deals with the logistical activities such as the design and planning of supply chains, facility design and management, warehousing and inventory management, transportation and distribution, order processing, etc.
In the context of supply chain management, contract logistics is a business model based on long-term cooperation between a company and the logistics service provider based on a division of labour and governed by a service agreement or contract.
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