What are the sources of revenue in contract logistics?

Contract logistics involves the outsourcing of various supply chain activities to a third-party logistics (3PL) provider, who takes care of tasks such as warehousing, transportation, and distribution for a company. The sources of revenue in contract logistics primarily come from the services rendered by the 3PL provider to their clients. These services can include storage and inventory management, order processing, transportation planning and execution, value-added services such as labeling and packaging, and information systems integration. Revenue is generated through various pricing models, such as fixed fees, transaction-based fees, or performance-based fees depending on the scale and complexity of the services provided. Additionally, 3PLs may also earn revenue through ancillary services such as customs brokerage, freight forwarding, and consulting.

This mind map was published on 10 September 2023 and has been viewed 43 times.