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Definition of an E-commerce Fulfillment Center

1. What is a logistics service provider?

A logistics service provider is an entrepreneur to whom companies can outsource their logistics tasks. The logistics service provider offers supply chain management services and thus acts as an intermediary between the demand side and the end consumer. Logistics services include shipping, warehousing and distribution.
Logistics service providers are similar to freight brokers, but have a higher level of tools, technology, knowledge, and services than freight brokers. Logistics service providers have a "big picture" strategy and use their logistics management software and business intelligence to optimize their people, technology, processes and industry knowledge for more complex shipping solutions.

Many companies initially see collaboration with logistics service providers as a cost-saving measure, but quickly realize that it brings many other positive aspects. These include freed-up resources, scalability, higher productivity, know-how, access to innovations and better technologies. Despite the many benefits of outsourcing, however, it is a path that should not be taken until the potential drawbacks have been weighed. These disadvantages include loss of control and communication problems. Read more about the pros and cons of outsourcing to logistics service providers.

2. What are the functions of a logistics service provider?

Most logistics service providers offer the following services: