Shipping companies are often called “logistics” companies, meaning they provide logistical solutions for the transportation of goods from one place to another. Logistics companies are asset-based and have a large fleet of cargo planes, ships, trucks or vans in operation.
In the United States, there are a vast number of third party logistics companies, each having their own method of performing the transportation as efficiently as possible. Some logistic companies have warehouses where good can be stored until the party where they are going is ready to receive the merchandise.
As well, there are 4th party logistics providers that design and implement the logistics an organization needs by way of computer systems and intellectual capital. The efficiency of the operation is improved by how the design established by these 4th party logistical companies. By using the computer system they have in place, they will collect data at every component in the chain of transportation.
After reviewing the data that has been collected, it is determined what changes, if any, are needed to make the process of shipping easier, faster and smoother. Over the past few years, these types of companies have increased as logistic companies are trying to get the most out of their system as possible due to the cost of fuel, insurance and maintenance and still keep the customers happy.