Glossary
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Example H2
Supply Chain Glossary
ABC analysis
Advanced Shipping Notice (ASN)
Agile supply chain
Air waybill (AWB)
Arrival notice
Automatic Identification Systems (AIS)
Backhauling
Backorder
Bayplan
Beneficial Cargo Owner (BCO)
Bill of Lading (B/L)
Blank sailing
Blind shipment
Bonded warehouse
Booking request
Break bulk cargo
Buffer stock
Bulk cargo
Bullwhip effect
CIF (Cost, Insurance and Freight)
Cargo release
Cargo survey
Carrier
Carrier haulage
Carrier scorecard
Certificate of origin
Commercial invoice
Commodity
Confirmed bookings
Consignee
Consignment inventory
Consignor
Container freight station
Container grade
Container packing certificate
Container rollover
Cross docking
Customer
Customs and transit documentation
Customs broker
Customs clearance
Customs manifest
Cut-off
Cycle counting
DAP (Delivered At Place)
DDP (Delivered Duty Paid)
DDU (Delivered Duty Unpaid)
DPU (Delivered At Place Unloaded)
Dangerous goods declaration
Deadheading
Deadweight tonnage
Demurrage
Depot
Detention charges
Digital twin
Dimensional weight
Discharge / Discharging of container
Discharge instructions
Dock receipt
Drayage
Drop shipping
Dry bulk cargo
EDI booking
EORI number
ETA (Estimated Time of Arrival)
EXW (Ex Works)
Economic Order Quantity (EOQ)
Electronic Product Code (EPC)
Empties
Equipment
Equipment discharge / load report
Event
Exception
Expedited freight
FAS (Free Alongside Ship)
FCA (Free carrier)
FOB (Free on board)
Feeder operator
Feeder vessel
Fill rate
Financial clearance status
Flags of Convenience
Fourth Party Logistics (4PL)
Free trade zone
Freight forwarding
Freight visibility
Full truckload (FTL) freight
GLEC framework
Gate-out
German Supply Chain Act
Global Trade Item Number (GTIN)
Goods Receipt Note (GRN)
Green logistics
Haulage equipment
Haulage requirements
Haulage type
Haulier
House Bill of Lading (HBL)
Hub and spoke model
INCOTERMS
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Logistics service provider

What is a Logistics Service Provider (LSP)?

A Logistics Service Provider (LSP) is a company or organization that offers specialized logistics and supply chain management services to support the transportation, storage, and distribution of goods. LSPs play a crucial role in facilitating efficient movement of products from point of origin to point of consumption, serving as intermediaries between manufacturers, suppliers, and end-users.

What are the services provided by logistics companies?

Logistics companies offer a wide range of services tailored to meet the diverse needs of their clients. These services typically include:

  • Transportation: Managing the movement of goods via various modes such as road, rail, air, or sea.
  • Warehousing: Providing storage facilities for inventory management, order fulfillment, and distribution.
  • Inventory Management: Monitoring stock levels, handling orders, and optimizing inventory turnover.
  • Order Processing: Managing orders from receipt to fulfillment, including picking, packing, and shipping.
  • Supply Chain Consulting: Offering strategic advice to optimize supply chain operations and improve efficiencies.
  • Customs Brokerage: Facilitating customs clearance and ensuring compliance with international trade regulations.

The different types of logistics service providers

There are several types of LSPs, each specializing in different aspects of logistics services:

  • Third-Party Logistics (3PL) Providers: Offer comprehensive logistics services including transportation, warehousing, and distribution.
  • Fourth-Party Logistics (4PL) Providers: Act as supply chain integrators, managing multiple 3PLs and other service providers.
  • Freight Forwarders: Specialize in arranging the transportation of goods from one location to another, often across international borders.
  • Contract Logistics Providers: Focus on providing customized logistics solutions under long-term contracts, including dedicated warehousing and distribution services.

How to choose a logistics service provider?

When selecting an LSP, consider the following factors:

  • Expertise and Experience: Assess the provider’s industry knowledge and track record in handling similar logistics challenges.
  • Service Offerings: Ensure the LSP offers the specific services your business requires, such as global shipping capabilities or specialized handling of sensitive goods.
  • Technology and Infrastructure: Evaluate the provider’s use of advanced technology and modern infrastructure to ensure efficiency and visibility in operations.
  • Cost: Compare pricing structures and transparency in pricing to ensure it aligns with your budget and provides value for money.
  • References and Reviews: Seek testimonials and references from other clients to gauge reliability, service quality, and customer support.

Related terms