What Is Contract Logistics? A Plain-English Guide for UK Businesses

What is contract logistics?

Contract logistics means handing the running of part, or all, of your supply chain to a logistics partner under a single contract. Instead of booking transport job by job, you agree a set of services - storage, stock control, picking and packing, distribution - and the provider runs them for you on agreed terms.

It sits somewhere between a one-off freight booking and full outsourcing. You keep ownership of your stock and your customer relationships. The logistics partner takes on the day-to-day work of keeping goods moving.

How is it different from standard freight forwarding?

A freight forwarder moves a consignment from A to B. That might be a container from Shanghai, an air freight pallet from Heathrow, or a groupage load into Europe. Once it is delivered, the job is done.

Contract logistics is ongoing. The same partner receives your goods, stores them, manages stock levels, prepares orders and ships them out to your customers - week after week, under one agreement and one point of contact.

What is typically included?

• Warehousing - storage that flexes with your seasons, without you paying for empty space all year.
• Inventory management - live stock visibility, so you know what you hold and where it is.
• Pick and pack - orders picked, checked, labelled and packed to your spec.
• Distribution - UK and international deliveries, with the right mode chosen for each consignment.
• Customs and compliance - import and export declarations handled alongside the physical flow.
• Reporting - regular numbers on stock, throughput and cost per order.

When does contract logistics make sense?

It usually earns its keep when one or more of these is true:

• Your volumes have outgrown your own warehouse or your own time.
• You are importing regularly and want one partner from port to doorstep.
• Seasonal peaks make fixed storage costly.
• You would rather invest in sales and product than in forklifts and racking.

It is not only for big brands. A business importing a few containers a month, selling through retailers or online, often sees the biggest jump - because every part of the chain finally talks to the same person.

Contract logistics with Croft Cargo

We run contract logistics for UK businesses that want their supply chain handled without handing over control. You get named people who know your account, warehousing, pick and pack, customs clearance and distribution under one contract - and live visibility of your stock through the Croft Assist portal.

Some clients start with a single service, like warehousing, and add others as volumes grow. The contract flexes with you.

If you want to compare what you pay today against a managed contract arrangement, send us your current volumes and we will put numbers side by side. Get in touch or book a call.