Contract Logistics


DEFINITION of 'Contract Logistics'

The outsourcing of resource management tasks to a third-party company. Contract logistics companies handle activities such as designing and planning supply chains, designing facilities, warehousing, transporting and distributing goods, processing orders and collecting payments, managing inventory and even providing certain aspects of customer service. Examples of major contracts logistics companies include United Parcel Service, Kuehne + Nagel, Exel, Genco and DHL.

BREAKING DOWN 'Contract Logistics'

Logistics management is an important component of many companies' profitability and overall success. While some companies manage their own logistics, others find it more efficient to hire specialized contract logistics companies to manage their logistics for them. Contract logistics companies often need to develop a deep understanding of how different industries work in order to best manage the logistics of a variety of companies.

  1. Quasi Contract

    A legal agreement created by the courts between two parties who ...
  2. Oral Contract

    A type of business agreement that is spoken, not memorialized ...
  3. Distribution Management

    Overseeing the movement of goods from supplier or manufacturer ...
  4. Breach Of Contract

    Violation of any of the agreed-upon terms and conditions of a ...
  5. Logistics

    The overall management of the way resources are obtained, stored ...
  6. Supply Chain

    The network created amongst different companies producing, handling ...
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