Contract Logistics
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Contract Logistics
Contract logistics refers to a long-term collaboration including a wide range of services going from conveyance of products or spare parts to final end customer delivery. This implies owning the necessary equipment for the range of services offered: warehouses, human resources, suitable equipment, stock management, dispatch follow-up, after-sales service, etc.
The logistical services provider becomes a key link in the chain that unites all the industrial company or retailer’s partners, and preserves its proper operation. are the ideal solution for partners involved most often in long-term logistical service contracts.
The provider with whom a logistical contract was signed manages every step of the distribution and final delivery process.
Specificities of Contract Logistics
Logistical solutions are possible for all kinds of companies – from storage right up to distribution in France and abroad. All circumstances are considered, and the solutions offered are in line with product typology, the company’s values and their customer base.
These solutions include:
- Storage ;
- Fulfilment (order processing);
- Added value services (stock management optimisation for instance);
- Upstream (procurement), downstream (packaging) and on-site (spare part availability) logistics;
- Spare part management: Warehousing, stock management, useful storage;
- The Foreign-Trade Zone (FTZ): place where products can be delivered, stored, handled and exported again in accordance with the specific customs regulations applicable in these zones.
Examples and Practical Applications
How to choose your contract logistics partner?
- The Logistic Provider in charge of your logistics must be established in France or abroad in line with your market and its needs. Select a market leader amongst those well-renowned in France.
- They must be able to resolve all your issues, using human resources they are able to manage perfectly. From production right through to storage and distribution to the end customer. Operations can be adapted to industrial or retail activities.
- Initially, they should be able to analyse your request and determine your specific needs. Your logistical performance must serve to boost your company’s development, by offering a range of services with high added value, a real competitive advantage, aiming to better serve your customers.
One of the most compelling examples concerns the after-sales service. This can be a real headache in the reverse supplu chain. Offering this service as part of contract logistics leads to true added value:
- Your service provider manages after-sales and return logistics, whilst ensuring that products are collected from the customer;
- They make sure products are reconditioned when received in the second half of their life cycle;
- They may even manage disassembly and re-assembly for end-of-life-products;
- Additional solutions included in contract logistics are available for companies wishing to efficiently manage their sustainable development approach.
Another service which logisticians should be able to conduct as part of contract logistics is collecting and recycling returned goods. Items that cannot be repaired are disassembled. Then, in accordance with the law, they are recovered, recycled or destroyed. The components’ value is taken into account in your company’s results, as is the secondary use of certain spare parts.
Regulatory Cornerstones
- Logistical service contract;
- Service provision contract;
- Subcontracting contract;
- General terms and conditions of sale, governing the operations conducted by transport and/or logistical operators, and any pertaining Civil Code article
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