What is a Logistics Operator and What are Its Main Functions?
Lógicos 3PL is a reliable logistics operator, but before engaging our services, it's crucial to understand what a logistics operator entails and how we can help elevate your business in both domestic and international markets. Additionally, it's important to distinguish between different types of logistics operators and understand how we set ourselves apart.
What is a Logistics Operator?
A logistics operator is a company that manages one or more phases of another company's supply chain upon request. This operator handles processes that are not the primary activities of a producing company, allowing the company to focus on tasks that add greater value to its business.
Functions of a Logistics Operator
The main function of a logistics operator is to optimize and streamline processes within the supply chain, efficiently handling the procurement, production, and distribution of goods. To perform these processes with the highest quality, the logistics operator must have the necessary material and technological resources.
The logistics operator is ultimately responsible for one or more stages of the supply chain. Some key phases include:
Order Processing
This phase involves several activities, including preparation, transmission, entry, fulfillment, and order status reporting. The logistics operator may also gather all necessary information for the purchase order. At Lógicos, we specialize in both online and retail logistics, ensuring all orders are prepared with precision and according to specific requirements.
Material Handling
Upon receiving goods at the warehouse, an initial check of delivery notes ensures everything matches the agreement. The logistics operator ensures maximum quality control and optimal storage conditions based on the type of goods, such as maintaining the cold chain or providing specific locations for dangerous goods.
Warehousing
The logistics operator provides and maintains the necessary space for optimal storage of a company's goods. This phase extends beyond safeguarding products and includes their reception, conservation, and inventory management.
Packaging
This stage involves deciding on the protection system for goods and their shipping methods. Packaging is crucial for proper handling and transport. Factors like goods' nature, value, temperature, humidity, and transport characteristics are considered. At Lógicos 3PL, we also cater to various needs, including:
- Labeling/Unlabeling
- Shrinkwrapping
- Blister/Unblister
- Gift and Promotional Packaging
Shipping
Shipping is a critical phase where logistics operator services are essential. At Lógicos, we provide tailored solutions for your shipments, whether national or international, by:
- Finding the ideal carrier
- Minimizing costs by consolidating shipments
- Tracking orders in real-time
Reverse Logistics
Lógicos 3PL handles reverse logistics, managing potential merchandise returns. Key tasks include performance and cost control and managing returned products' inventory.
Degree of Outsourcing of Logistics Operators
As mentioned, a company hiring a logistics operator does not have to outsource all supply chain stages. The degree of outsourcing is a crucial decision, and logistics operators can be categorized as follows:
1PL (First Party Logistics)
1PL providers offer basic services, handling only the transport of goods, while the hiring company manages other supply chain stages. Sometimes, 1PL refers to the company itself managing shipping.
2PL (Second Party Logistics)
2PL providers take care of goods' storage and transport. They offer broader services but still operate within standard service parameters.
3PL (Third Party Logistics)
3PL operators, like Lógicos 3PL, integrate logistics services, including storage, transport, product traceability, inventory control, cross-docking, and reverse logistics. These services are personalized to the client's needs, optimizing the supply chain management, allowing the business to focus on core processes.
4PL (Fourth Party Logistics)
4PL providers oversee supply chain supervision, optimizing logistics processes without owning physical resources, which are usually outsourced to 3PL providers. They act as strategic partners, with the production company relying more on them.
Recently, a 5PL operator has emerged, integrating 3PL logistics services with 4PL provider specialization and management.
At Lógicos 3PL, we strive to simplify supply chain processes and become your trusted logistics operator. We hope you find this article insightful. If you have any questions, please feel free to contact us.
