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How Can a Logistics Company Working as a Captive Supplier Yield Profits?

Dec 19th 2015 at 10:50 AM

A logistics company that works as a captive supplier for its client company can drive profits and growth. In fact it has been observed that the choice of a logistics company or a parcel company can make a huge difference to the profitability prospects of the client company. In the language and discipline of logistics management it is very often said that if a logistics company bases itself inside the campus of the manufacturing unit of the client company and continues to serve the client according to its requirements on the basis of a just in time model, it can open up and unlock new drivers of growth for the client company. This can be better understood by pulling a leaf out of the book of modern day total quality management.

Operating as a captive supplier of services to the client company, the logistics company offers customized services of packing, transport, uploading, real time information sharing through technological platforms like RFID or GPS with the client company and delivering customized formats of invoices and payment options for easier and more inexpensive payment solutions. This means that having a logistics company in the courtyard of the manufacturing unit as is as good as having a partner for logistics operations when you need it and where you need it. Working on the just in time model of inventory management parcel company can offer just in time services with zero lead time meaning that there shall be lesser holding costs and operating costs of inventory blockage. This shall implicitly mean lesser costs of inventory mobilization and transport.

Sinopost is a UK logistics company that provides fully customized logistics services to clients worldwide. With a vast experience and expertise in offering parcel and logistic services to clients of different verticals and scope across the world, Sinopost is today counted as a premier UK logistics company. Try it today!

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