What Is a Logistics Service Provider (LSP)? Aaj Enterprises August 2, 2022

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What Is a Logistics Service Provider (LSP)?

To get the brief about the logistics service provider, first, you need to understand what precisely the word ‘logistics’ illustrates. There has been a misconception that logistics is another name for transportation. But it is not the truth. Transportation is part of logistics, but logistics has a broader definition as it plays a crucial role in the supply chain industry.  Logistics service providers fall into several categories as logistics is a vast field.

In simple words, logistics service providers are companies with a core specialization in providing logistics services and solutions. A logistics provider may offer warehousing and packaging services in addition to the transportation management system.

This article will give information about other related aspects of logistics, the activities carried out, the types of services offered, and some tips to choose the best logistics solution according to your needs and preferences.

What Is Logistics?

Previously, logistics services were limited to only being used while transporting supplies and equipment to military troops. Now, it has become an essential part of businesses, especially eCommerce businesses, for handling resources and transporting them to final destinations.

Manufacturers use logistics to transport raw materials to their factories and finished goods to their customers. The importance of logistics in the supply chain has increased due to the global rise of e-commerce. Whether it is a B2B or B2C transaction, enhancing client satisfaction depends significantly on the speed and efficiency of logistics.

Are Logistics & Transportation the Same?

The simple answer is no. Some people consider logistics similar to transportation, which is far from the truth. While transportation only deals with moving products from one place to another using vehicles, logistics is the wider field.  Cataloging, storage, packing, and handling goods are all logistics parts.

Example of Logistics

Let’s take an example of the e-commerce industry, Amazon, to understand the term logistics deeply. Amazon uses a global network of distribution, sortation, and fulfillment centers to deliver the products.  The company fulfills same-day and next-day delivery orders using a complex logistics framework.

Before being transported to sortation facilities, products are first transferred to Amazon’s ecommerce fulfillment center. When the goods arrive at sortation facilities, they are loaded onto various conveyances, occasionally even the company’s fleet of delivery vans and aircraft.

What Is Logistics Management?

Logistics management is the management process of the entire flow of goods and their related activities. The management process involves identifying potential distributors and suppliers and the effectiveness and acceptability of their services.  Logistics also includes tracking the delivery’s movement, location, and status.

All of this effort involves efficient planning, strategizing, and implementation process. To ensure that items arrive at their destination in good shape and are delivered to the appropriate internal or external client, Warehousing and logistics management aims to allocate the right amount of a resource at the right time.

If it is more cost-effective, some manufacturing organizations manage their logistics, while others outsource the task to specialists.

Elements of Logistics

There are generally 5 elements of logistics which are mentioned below:-

  1. Storing, warehousing, and handling materials
  2. Unitization and packaging
  3. Counting
  4. Transportation
  5. Knowledge and command

Types of Logistics Services

Warehousing Services

Before being delivered to customers, goods are typically kept at a warehouse or moved between warehouses. While some businesses rely on external or third-party warehouse company in India, others maintain their own warehouses. By using logistics service providers, you can avoid paying for a warehouse’s construction, upkeep, and maintenance.

Transportation Management Services

Transportation management services include planning, executing, and optimizing the physical movement of goods and ensuring the shipment is compliant and proper documentation is available using the transportation management system.

Courier Services

Courier services are frequently taken for smaller items, low order volumes, or highly fragile things that need special delivery attention. The delivery pace is quicker, and a combination of air and land transportation is preferred to make this possible.

To deliver a product from a warehouse straight to the intended customer, courier services are typically reserved for the final stage of the process.

What Does a Logistics Service Provider Do?

The logistics service provider offers logistics support to other businesses. They are categorized in various departments based on the items and materials they are aimed to provide. This is because some goods require specific transportation tools, such as refrigerator trucks for transferring frozen meals. Some logistics providers focus on particular sorts of freight, such as general cargo, letters, pallets, or containers, while others may concentrate on specific industries, including chemical, steel, and auto industries.

Tasks of Logistics Service Providers

  • Incoming goods logistics
  • Warehousing
  • Order Acceptance
  • Invoicing
  • Picking
  • Shipping
  • Payment and finance management
  • Returns


The Warehousing and Logistics Services provider is responsible for ensuring that all of its logistics services function properly.  Poor logistical support can result in late delivery, a failure to satisfy customers, and eventually, a loss of business. It is, therefore, preferable to pick a logistics service provider who is well-connected, trustworthy, and knowledgeable.

AAJ Enterprises is the best shipping logistic company that provides efficient logistics services to businesses and helps optimize your supply chain, so your business grows.

Read more: Future of 3rd Party Logistics in India & The Role Of Technology

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