Logistics is sometimes referred to as the circulatory system of the economy, which indicates the importance of the work of logistics companies.

Trade and production are essential for the development of a country. Trade requires transport routes and the movement of cargo from producers to consumers. It is important for manufacturing companies to have a timely supply of raw materials and components. All these issues are handled by logisticians within companies or logistics companies.

A logistics company is an organization that knows how to organize the optimal movement of cargo from the sender to the recipient. Is it easy to do? If you need to transport cargo within one city, from one entrance to another, problems can already arise: there are no loaders, or all the vehicles are busy. What can we say if the cargo needs to be transported from one country to another? There are many more questions, and problems can arise at every step. A modern logistics company is capable of solving them.

What Is a Logistics Company?

A professional logistics company solves tasks of any complexity in domestic and cross-border cargo transportation and is capable of performing a variety of tasks that arise during transportation:

• organize cargo pickup and delivery to the point of destination;
• prepare documents, including for international transportation;
• assemble consolidated cargo;
• find the optimal route for transportation in terms of time or budget.

The cheapest way to deliver cargo from Asia or America to the European continent is by sea, and within Europe – by road or rail. Rail is cheaper and suitable for large-sized cargo. Road delivery is the most flexible and fastest type of transport. The most expensive but also the fastest mode of transport is air transport, but it has certain restrictions on weight, volume and types of cargo. A logistics company can calculate all types of delivery and offer the most advantageous combination of transport.

Tasks and Goals of a Modern Logistics Company

The main task of a logistics company is not just to transport cargo, but to ensure efficiency at every stage of the process, from order to delivery. In doing so, logistics specialists solve several important tasks:

• minimizing transportation costs;
• saving time on delivery;
• optimizing customs service costs.

The goal of a logistics provider might be to deliver cargo from point A to point B within a specified time frame and pre-agreed budget. It does not matter where the points of departure and arrival are located – in Ukraine or abroad. The task remains the same, only the conditions and methods of solving it change.

Main Areas of Work of a Modern Logistics Company

In addition to transportation, a logistics company organizes cargo security throughout the entire route, storage in transit warehouses, preparation of related documents and customs clearance when crossing state borders.

When organizing transportation, it is important to choose a safe and fast route, taking into account transport congestion and the possibility of additional shipments. These actions require the consolidation and analysis of a large amount of information.

International delivery is an even more complex process. In addition to organizing optimal transportation in terms of choosing the type of transport and time constraints, the logistics company provides:

• customs clearance;
• brokerage services;
• warehousing services.

Thus, a modern logistics company can do much more than just deliver cargo to a warehouse. From the moment a request for logistics services is received, specialists perform the following:

• study the characteristics of the cargo, the conditions of its transportation and storage;
• calculate customs costs;
• plan the optimal route;
• calculate the cost of services.

After that, a cooperation agreement is signed. The logistics company organizes the receipt of cargo, its storage in a warehouse if necessary, and the preparation of waybills and customs documents. Then the cargo is transported by road, air, rail, or sea.

It is worth remembering that at each stage, a force majeure situation may arise, for example, a temporary closure of one of the modes of transport. Logisticians keep the entire route of the cargo under control, so they are able to react in a timely manner: change the mode of transport or the logistics route.

Advantages of Logistics Company Services for Modern Businesses

Companies that use the services of a logistics company receive a number of significant advantages, including:

• effective planning of production processes, taking into account the time required for the delivery of raw materials and components;
• savings on wages and taxes due to the absence of the need to maintain a broker on staff;
• savings on transport services, as cargo can be consolidated;
• minimization of customs payments thanks to correct documentation;
• saving of energy and time thanks to professional and error-free brokerage support.

According to economists’ estimates, cooperation with a logistics company can save a company up to 25% of transportation costs. There are no studies on how much time and nerves can be saved, but they are certainly worth at least as much.

When to Use the Services of a Logistics Company

In the course of their work, companies in various industries face the need to transport cargo from Ukraine to Europe, receive cargo from China to Ukraine, and deliver products or equipment to different parts of the world.

Entrepreneurs should contact a logistics company if:

• they need to deliver oversized cargo;
• they need to bring a batch of cargo from China or Europe to Ukraine;
• previous attempts to deliver cargo independently were too long or unsuccessful;
• the cargo must be collected from several locations in another country and then delivered to different warehouses;
• customs clearance in Europe or China and customs clearance upon arrival in Ukraine are required.

Logistics company specialists are well-versed in customs regulations not only in Ukraine but also abroad, so they can correctly clear customs and release cargo, avoiding misunderstandings and penalties. Cooperation with a logistics company will make life easier for entrepreneurs and organizations of various forms of ownership and save money and time when transporting cargo.