{"id":1197,"date":"2025-08-07T19:19:17","date_gmt":"2025-08-07T19:19:17","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/contract-logistics\/"},"modified":"2026-04-20T20:52:25","modified_gmt":"2026-04-20T20:52:25","slug":"contract-logistics","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/contract-logistics\/","title":{"rendered":"What is Contract Logistics, and How Can It Scale Your Fulfilment?"},"content":{"rendered":"\n<div class=\"wp-block-shipbob-blocks-single-toc single-toc\" data-controller=\"blog-toc-controller\" data-action=\"scroll@window-&gt;blog-toc-controller#scrollChanged:passive\" id=\"toc-component\" blog-toc-controller-time-label-value=\"Minutes\" blog-toc-controller-button-label-value=\"Show more\"><div class=\"single-toc-overview\"><p>Table of Contents<\/p><div class=\"single-toc-read-time\"><p>** Minutes<\/p><\/div><\/div>\n<p class=\"wp-block-paragraph\"><a href=\"#h-what-is-contract-logistics\">What is contract logistics?<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"#h-how-do-contract-logistics-work-to-benefit-businesses\">How do contract logistics work to benefit businesses?<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"#h-what-s-the-difference-between-contract-logistics-services-and-3pl\">What\u2019s the difference between contract logistics services and 3PL?<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"#h-how-to-choose-the-right-logistics-option-for-your-business\">How to choose the right logistics option for your business<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"#h-take-the-complexity-out-of-contract-logistics-partner-with-shipbob-today\">Take the complexity out of contract logistics: Partner with ShipBob today<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"#h-contract-logistics-faqs\">Contract logistics FAQs<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"#\"><\/a><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-2025-single-key-takeaways-container single-key-takeaways-container\"><div class=\"single-key-takeaways-container-title-container\"><span class=\"single-key-takeaways-container-title-icon\"><\/span><h2 class=\"single-key-takeaways-container-title\">Key Takeaways<\/h2><span class=\"single-key-takeaways-container-title-bottom-line\"><\/span><\/div><div class=\"single-key-takeaways-container-children\">\n<div class=\"wp-block-shipbob-blocks-2025-single-key-takeaways-item single-key-takeaways-item\"><div class=\"single-key-takeaways-item-list-count\"><p class=\"single-key-takeaways-item-subtitle\">1<\/p><\/div><div class=\"single-key-takeaways-item-list-content\"><p class=\"single-key-takeaways-item-title\">Contract logistics involves outsourcing specific supply chain functions like transportation planning and delivery management to external experts, helping businesses reduce costs and increase efficiency.<\/p><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-2025-single-key-takeaways-item single-key-takeaways-item\"><div class=\"single-key-takeaways-item-list-count\"><p class=\"single-key-takeaways-item-subtitle\">2<\/p><\/div><div class=\"single-key-takeaways-item-list-content\"><p class=\"single-key-takeaways-item-title\">Contract logistics providers negotiate better shipping rates, coordinate freight, and optimise shipping routes, benefiting businesses that import goods or distribute inventory to multiple locations.<\/p><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-2025-single-key-takeaways-item single-key-takeaways-item\"><div class=\"single-key-takeaways-item-list-count\"><p class=\"single-key-takeaways-item-subtitle\">3<\/p><\/div><div class=\"single-key-takeaways-item-list-content\"><p class=\"single-key-takeaways-item-title\">Unlike contract logistics, 3PLs offer comprehensive logistics services including warehousing, order fulfilment, and inventory management, providing flexibility and real-time visibility into the supply chain.<\/p><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-2025-single-key-takeaways-item single-key-takeaways-item\"><div class=\"single-key-takeaways-item-list-count\"><p class=\"single-key-takeaways-item-subtitle\">4<\/p><\/div><div class=\"single-key-takeaways-item-list-content\"><p class=\"single-key-takeaways-item-title\">Choosing between contract logistics and 3PL depends on business needs; contract logistics is ideal for managing transportation, while 3PLs offer end-to-end solutions for businesses focused on growth and efficiency.<\/p><\/div><\/div>\n<\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Freight forwarders, contract logistics, <a href=\"https:\/\/www.shipbob.com\/3pl\/vs-4pl\/\">3Pls vs 4PLs<\/a>, <a href=\"https:\/\/www.shipbob.com\/ecommerce-logistics\/lead-logistics\/\">lead logistics providers<\/a>, courier partners, and so on\u2026<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With so many different types of third parties, it can be a challenge to understand the ins and outs of outsourcing logistics.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But if you\u2019re ready to outsource, it\u2019s important to understand the services, capabilities, and roles of different logistics providers, so you can make the right decision on who to partner with.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Contract logistics have evolved rapidly due to the rise of <a href=\"https:\/\/www.shipbob.com\/blog\/on-demand-logistics\/\">on-demand logistics<\/a>, but they often get confused with 3PLs that offer a different set of capabilities. While these terms are used interchangeably by some, they can mean completely different things.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this article, we discuss the differences between the two in detail, and what you need to know before you outsource logistics to a third-party.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-contract-logistics\">What is contract logistics?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Contract logistics involves the strategic outsourcing of specific supply chain functions, such as transportation planning, freight coordination, or <a href=\"https:\/\/www.shipbob.com\/blog\/delivery-management\/\">delivery management, <\/a>to external experts like freight forwarders, consultants, or third-party logistics (3PL) providers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These services usually come with long-term agreements and are meant to help businesses reduce logistics costs, increase operational efficiency, and scale more easily without having to manage supply chain functions in-house<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-examples-of-contract-logistics-services-providers\">Examples of contract logistics services providers<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Contract logistics services are offered by a variety of providers that focus on optimising different parts of the supply chain.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are a few well-known contract logistics providers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.expeditors.com\/\"><strong>Expeditors<\/strong><\/a>: A global logistics company that offers transportation management, customs brokerage, and supply chain consulting.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.bdpinternational.com\/\"><strong>BDP International<\/strong><\/a>: Focused on managing complex global supply chains for industries like chemicals and life sciences, BDP provides transportation and compliance services.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.tql.com\/\"><strong>TQL (Total Quality Logistics)<\/strong><\/a>: One of the largest freight brokerage firms in North America, TQL specializes in arranging truckload, LTL, and intermodal shipping.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.ntgfreight.com\/\"><strong>Nolan Transportation Group (NTG)<\/strong><\/a>: A transportation management company that connects shippers with couriers and handles freight coordination.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-do-contract-logistics-work-to-benefit-businesses\">How do contract logistics work to benefit businesses?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Contract logistics providers help businesses plan, manage, and execute transportation and delivery strategies, especially for moving goods between manufacturers, distribution centres, and third-party logistics providers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By working closely with major couriers and freight partners, contract logistics providers can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Negotiate more favorable shipping rates due to volume discounts<\/li>\n\n\n\n<li>Coordinate inbound and outbound freight<\/li>\n\n\n\n<li>Identify optimised shipping routes and modes of transport<\/li>\n\n\n\n<li>Reduce delays, costs, and risk across international or domestic shipments<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These services are especially useful for ecommerce businesses that import goods, sell internationally, or distribute inventory to multiple fulfilment centres. Contract logistics helps ensure your inventory gets to where it needs to be \u2014 even if you&#8217;re not handling the final delivery to the customer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-s-the-difference-between-contract-logistics-services-and-3pl\">What\u2019s the difference between contract logistics services and 3PL?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span>What are the differences between a contract logistic company and a 3PL? While <\/span>While they tend to be confused for one and the same, 3PLs and contract logistics companies may have completely different or even complementary services.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While contract logistics companies typically help arrange transportation and routes, a <a href=\"https:\/\/www.shipbob.com\/3pl\/\">3PL company<\/a> handles much more than just transportation; 3PLs provide a full suite of logistics services, from <a href=\"https:\/\/www.shipbob.com\/blog\/warehousing\/\">warehousing<\/a> and <a href=\"https:\/\/www.shipbob.com\/blog\/order-fulfillment\/\">order fulfilment<\/a>, to inventory management and <a href=\"https:\/\/www.shipbob.com\/blog\/automated-shipping\/\">automated shipping<\/a>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many 3PLs operate multiple <a href=\"https:\/\/www.shipbob.com\/3pl\/distribution\/\">distribution<\/a> locations, so merchants can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.shipbob.com\/blog\/split-inventory-across-multiple-fulfillment-centers\/\">Split inventory<\/a> across <a href=\"https:\/\/www.shipbob.com\/blog\/distribution-center\/\">distribution centres<\/a>.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.shipbob.com\/blog\/inventory-allocation\/\">Allocate inventory<\/a> based on demand<\/li>\n\n\n\n<li>View inventory on hand in real time.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">3PLs are an ideal logistics partner as they provide flexibility and visibility into the <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-supply-chain\/\">ecommerce supply chain<\/a>, as well as offer technology integrations with ecommerce solutions (from <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-planning\/\">inventory planning<\/a> to <a href=\"https:\/\/www.shipbob.com\/blog\/introduction-freight-shipping\/\">freight shipping<\/a>), enabling an <a href=\"https:\/\/www.shipbob.com\/blog\/end-to-end-ecommerce\/\">end-to-end ecommerce solution<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the same time, a contract logistics company may help manage the transportation to get bulk inventory to a 3PL from a manufacturer, whereas a 3PL typically arranges transportation for orders once they are fulfilled through the couriers directly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The chart below displays how a 3PL differs from contract logistics, followed by a deeper dive into the different services.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Service<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Contract Logistics&nbsp;<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>3PL<\/strong><\/td><\/tr><tr><td>Inventory management&nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u274c<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u2705<\/td><\/tr><tr><td>Delivery management&nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u2705<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u2705<\/td><\/tr><tr><td>Warehouse management&nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u274c<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u2705<\/td><\/tr><tr><td>Order fulfilment flexibility&nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u274c<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u2705<\/td><\/tr><tr><td>Real-time shipment tracking<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u274c<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u2705<\/td><\/tr><tr><td>Tech integration availability&nbsp;&nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u274c<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u2705<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-inventory-management\">1. Inventory management<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span>Compared to contract logistics companies that only specialize in delivery and transportation, a tech-enabled <a href=\"https:\/\/www.shipbob.com\/3pl\/software\/\">3PL\u2019s software<\/a> offers built-in <a href=\"https:\/\/www.shipbob.com\/inventory-management\/\">inventory management<\/a> that makes it easy to <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-tracking\/\">track inventory<\/a> in real time, <a href=\"https:\/\/www.shipbob.com\/blog\/sku-management\/\">manage SKUs<\/a>, and monitor inventory performance over time.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span>For instance, ShipBob is a 3PL that makes it easy to <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-levels\/\">optimise inventory levels<\/a> and restock on time by setting up reorder notification points. <\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span>By using historical order data to determine SKU velocity, you can <a href=\"https:\/\/www.shipbob.com\/blog\/demand-forecasting\/\">forecast demand<\/a> and have a better understanding on when it will be time to <\/span><a href=\"https:\/\/www.shipbob.com\/blog\/restocking-inventory\/\">restock inventory<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span>Having more control over inventory management ensures that you have enough inventory to meet demand while optimising storage, so you\u2019re less likely to overpay on <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-carrying-costs\/\">carrying costs<\/a> due to <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/dead-stock\/\">deadstock<\/a>.&nbsp; <\/span><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><span>&#8220;We rely heavily on ShipBob for inventory tracking and forecasting and that\u2019s been a key part of our partnership. Our area of expertise is not logistics or inventory management, so we lean on ShipBob a lot for that. We\u2019ve learned so much about this industry since working with ShipBob, as they are true supply chain experts, which has been good for everyone on our team. When thinking about fulfilment, there\u2019s such a focus on the packing and shipping aspect that the inventory management piece can often go unnoticed. But ShipBob\u2019s ability to help us track and reconcile inventory is really great.<\/span>&#8220;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8211; <span><em>Callie Tivnan, E-commerce Manager, and Christina Williams, Customer Success Manager at Barefaced<\/em><\/span><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-delivery-management\">2. Delivery management<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span>Contract logistics are ideal for overseeing the delivery management processes. However, 3PLs that operate multiple fulfilment centre locations can help brands <a href=\"https:\/\/www.shipbob.com\/blog\/product-allocation\/\">allocate product<\/a> based on where there is more most demand.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span>3PLs also partner with major couriers, and even some partner with <a href=\"https:\/\/www.shipbob.com\/blog\/regional-parcel-carriers\/\">regional courier partners<\/a> to negotiate shipping rates, so they can pass the savings on to you and your customers.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span>Some fulfilment providers, like ShipBob, use <a href=\"https:\/\/www.shipbob.com\/logistics-automation\/\">logistics automation<\/a> to find the most optimised route for shipments and automatically generate order tracking details to share with your customers, so you and your customers can track the <a href=\"https:\/\/www.shipbob.com\/blog\/how-last-mile-delivery-works\/\">last-mile delivery<\/a> process.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-warehouse-management\">3 Warehouse management<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span>Logistics providers use <a href=\"https:\/\/www.shipbob.com\/warehouse-management\/warehouse-management-system-wms\/\">warehouse management systems (WMS)<\/a> to ensure inventory is received, stored, picked, packed, shipped, and replenished in the most efficient way possible.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span> Unlike contract logistics, 3PLs use a WMS not only to streamline and improve internal processes in a <a href=\"https:\/\/www.shipbob.com\/blog\/differences-warehouse-fulfillment-center\/\">fulfilment centre<\/a>, but to also provide merchants with visibility into the fulfilment process. <\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span>That way, merchants know which inventory is in transit, what\u2019s on hand, and what items are being fulfilled.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, ShipBob\u2019s proprietary WMS provides visibility into the fulfilment process by allowing merchants to filter orders by status, location, and sales channel.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ShipBob also provides transparency into performance, which offers merchants peace of mind. From the ShipBob dashboard, merchants can view insights on fulfilment speed, <a href=\"https:\/\/www.shipbob.com\/blog\/order-accuracy\/\">order accuracy<\/a>, shipping, and more.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><span>\u201cEven though ShipBob is fulfilling our orders, I still get visibility into and control of the process with what they\u2019re doing. Wherever I am in the world, I can log in to my ShipBob dashboard and know exactly what\u2019s going on with our orders. ShipBob is dependable, so I can trust that a customer will get their product within two days, even if I&#8217;m not in the office or even near the vicinity.\u201d<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span><em><span>\u2013<\/span> Kelly Bond, Operations Manager at Elle Sera&nbsp;<\/em><\/span><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-order-fulfillment-flexibility\">4. Order fulfilment flexibility<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span>Unlike contract logistics, the right 3PL has the systems and processes to provide more flexibility over the <a href=\"https:\/\/www.shipbob.com\/blog\/retail-fulfillment\/\">retail fulfilment<\/a> process.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span>For instance, ShipBob makes it easy for merchants to maintain control with access to a user-friendly dashboard that makes it easy to<\/span><span> manage SKUs, create <a href=\"https:\/\/www.shipbob.com\/blog\/product-bundling\/\">product bundles<\/a>, manage subscription orders, and oversee <a href=\"https:\/\/www.shipbob.com\/blog\/b2b-ecommerce\/\">B2B ecommerce<\/a> orders.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-real-time-shipment-tracking\">5. Real-time shipment tracking<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span>These days, customers expect real-time shipment updates on every order placed online. They want to know exactly when their orders is being processed, prepared, shipped, and when it will be delivered.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span>Partnering with a 3PL can ensure customers will receive <\/span><a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-order-tracking\/\"><span>order tracking<\/span><\/a><span> notifications that will provide real-time updates generated by the courier.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span>Keeping your customers updated is a great way to ensure satisfaction and retention.<\/span><i><span>&nbsp;<\/span><\/i><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><span>\u201cAfter switching to ShipBob, we instantly had much more transparency. Unlike our last 3PL, ShipBob has integrity of information and end-to-end order tracking, from receiving to fulfilment to shipping. Now every single day when I check our dashboard, I know exactly what\u2019s happening with our orders.\u201d <\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span><em>&#8211;  Maria Osorio, Logistics and Operations Director at Oxford Healthspan&nbsp;<\/em><\/span><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-6-tech-integration-availability\">6. Tech integration availability<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">By partnering with a <a href=\"https:\/\/www.shipbob.com\/blog\/technology-enabled-3pl-fulfillment-top-benefits\/\">tech-enabled 3PL<\/a>, you\u2019re given the ability to plug a fulfilment provider&#8217;s technology into your existing or growing tech stack.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, <span>ShipBob\u2019s technology integrates directly with all major ecommerce platforms, marketplaces, and solutions. <\/span>And if your tech stack requires a custom integration, our <a href=\"https:\/\/www.shipbob.com\/product\/apps-api\/\">Developer API<\/a> allows you to build the solution required for your brand to thrive.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span>By integrating the leading solutions to ShipBob\u2019s technology, you can easily establish a <a href=\"https:\/\/www.shipbob.com\/blog\/multichannel-retailing\/\">multichannel retailing<\/a> and sell on multiple sales channels (including marketplaces like Amazon and <a href=\"https:\/\/www.shipbob.com\/blog\/walmart-marketplace\/\">Walmart<\/a>), manage orders more effectively, enhance your <a href=\"https:\/\/www.shipbob.com\/blog\/returns-management-process\/\">returns management<\/a> process, and more.<\/span><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">&#8220;Our business relies heavily on the key integrations between ShipBob, Loop Returns, and Shopify. The direct integration between ShipBob and Shopify is crucial to our success, serving as the primary driver for all our third-party services that depend on up-to-date order data. Additionally, the direct integration with Loop Returns enhances our customer support team\u2019s efficiency and empowers our customers.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>\u2013 Sal Perera, Director of Supply Chain at CLEARSTEM&nbsp;<\/em><\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-choose-the-right-logistics-option-for-your-business\">How to choose the right logistics option for your business<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span>With all of this information, how will you know which service is best to choose from? Here is a deeper dive into which logistics option is right for your business.&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" height=\"314\" width=\"700\" src=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/08\/f352ab6884a45518bda26d0b2e1f13d3.png?w=1225\" alt=\"Infographic explaining when to partner with a contract logistics company and when to choose a 3PL. \" class=\"wp-image-22089\" srcset=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/08\/f352ab6884a45518bda26d0b2e1f13d3.png?w=1225 1225w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/08\/f352ab6884a45518bda26d0b2e1f13d3.png?w=160 160w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/08\/f352ab6884a45518bda26d0b2e1f13d3.png?w=400 400w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/08\/f352ab6884a45518bda26d0b2e1f13d3.png?w=768 768w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/08\/f352ab6884a45518bda26d0b2e1f13d3.png?w=700 700w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/08\/f352ab6884a45518bda26d0b2e1f13d3.png?w=240 240w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-it-makes-sense-to-use-contract-logistics\">When it makes sense to use contract logistics<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Pending the exact services needed, size of your business, and budget, a contract logistics agreement may be used for the exact stage of the supply chain you need help with, or for one-off services.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It may be worthwhile to utilise a contract logistics company if you are willing to handle everything else yourself \u2013 picking and packaging orders, tracking them, keeping track of your own inventory, and maintaining the warehouse.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you have the time to market your business and handle the logistics when it comes to fulfilling orders, then a contract logistics company is right for you.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-it-makes-sense-to-use-a-3pl\">When it makes sense to use a 3PL<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span>If you find that most of your time is consumed with running your business and marketing, the best solution for you is to utilise the order fulfilment services of an expert fulfilment provider. <\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span>Since 3PLs <\/span><span>offer a wide range of solutions to support <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-efficiency\/\">supply chain efficiency<\/a>, you can worry less about <a href=\"https:\/\/www.shipbob.com\/blog\/logistics-operations\/\">logistics operations<\/a> and save time while expanding your supply chain.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fulfilment partners also provide the necessary infrastructure, technology, expertise, and support you need to stay competitive and meet customer expectations around fast, affordable shipping, which supports your bottom line.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><span>\u201cExpanding our ShipBob warehouse network from 2 to 4 warehouses has translated into substantial cost savings, amounting to $1.5 million in freight expenses for Our Place. Currently, only 2% of our parcels are reaching Zone 7 or Zone 8 collectively, indicating that 98% of our parcels are reaching Zones 1 through 6. By shipping locally to lower zones, we&#8217;re achieving the most significant reductions in outbound costs.\u201d <\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>&#8211; <span>Ali Shahid, COO of Our Place&nbsp;<\/span><\/em><\/p>\n<\/blockquote>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Inside A ShipBob Logistics and Fulfillment Hub: A 360\u00b0 Look in 4K HD\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/7l-FgE4piic?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-take-the-complexity-out-of-contract-logistics-partner-with-shipbob-today\">Take the complexity out of contract logistics: Partner with ShipBob today<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span>ShipBob is a leading fulfilment solution that operates a <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/international-fulfillment\/\">global omnifulfillment<\/a>&nbsp;network.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span>With ShipBob, online brands have plenty of room for growth with access to a robust fulfilment infrastructure, a team of logistics experts, and a hands-on <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-customer-service\/\">customer service<\/a> team.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span>We also make it easy to get started. <\/span><span>Once you\u2019re connected to ShipBob\u2019s technology, you can ship inventory to one or more of our fulfilment centre locations.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As soon as orders are placed online, they are automatically sent to the closest fulfilment centre location to be picked, packed and shipped.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><span>\u201cAs we saw our small startup business beginning to gain traction, we needed to find a 3PL that could help us manage the thousands of orders we would get in minutes.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span> When I was researching companies, I knew they had to be tech-enabled, integrate with Shopify, and a company that could scale with us. We found exactly that with ShipBob.\u201d <\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8211; <span><em>Jason Ton, CFO of <a href=\"https:\/\/www.shipbob.com\/blog\/100-thieves\/\">100 Thieves<\/a><\/em><\/span><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">To learn more about ShipBob\u2019s premium fulfilment solution, click the button below to get in touch.<\/p>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\"><strong>Request Fulfilment Pricing<\/strong><\/a><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-contract-logistics-faqs\">Contract logistics FAQs<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span>Here are the top questions around contract logistics and how it differs from a 3PL.<\/span><\/p>\n\n\n\n<section class=\"wp-block-shipbob-blocks-section-container section section-container  max-width-blog\"><div class=\"container section-info section-info-align-none u-hidden\"><h6 class=\"section-title \"><\/h6><h2 class=\"section-content h2\"><\/h2><p class=\"section-copy u-hidden\"><\/p><\/div><div class=\"container flex-container direction-col justify-none align-none flex-wrap\">\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col  col-8\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">When does it make sense to use contract logistics?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p class=\"wp-block-paragraph\"><span>If you are looking for a solution for delivery and transportation, a contract logistic company might be ideal. Contract logistics can help you manage your shipping and potentially give you lower rates, but you still have to oversee fulfilment and inventory management.&nbsp;<\/span><\/p>\n\n<\/div><\/div><\/div>\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col  col-8\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">Do you save more money with a 3PL or with contract logistics?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p class=\"wp-block-paragraph\"><span>In the long run, investing in a 3PL can help you save more money. Not only does it save you time to focus more on your business \u2013 whether in marketing or expansion \u2013 but it can also save you money that you would have to spend setting up your own infrastructure. It ultimately depends on your needs and the exact services you want to outsource.&nbsp;<\/span><\/p>\n\n<\/div><\/div><\/div>\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col  col-8\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">How does contract logistics serve the needs of ecommerce businesses?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p class=\"wp-block-paragraph\"><span>Contract logistics can help ecommerce businesses manage the flow of inventory before it even reaches a fulfilment centre. Whether it&#8217;s coordinating inbound freight from manufacturers or optimising courier selection for international shipments, contract logistics providers help ensure your products get where they need to go efficiently, so you can focus on selling, not shipping.<br><\/span><\/p>\n\n<\/div><\/div><\/div>\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col  col-8\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">How can contract logistics improve supply chain efficiency?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p class=\"wp-block-paragraph\"><span>By outsourcing transportation planning, courier negotiation, and freight coordination, businesses can reduce delays, cut shipping costs, and improve visibility across their supply chain. Contract logistics providers often bring deep courier relationships and logistics expertise that make a supply chain run smoother.<\/span><\/p>\n\n<\/div><\/div><\/div>\n\n<\/div><div class=\"cta-container u-hidden\"><a class=\"btn btn-primary \" href=\"\"><\/a><\/div><\/section>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ready to outsource logistics? Learn the difference between contract logistics and 3PLs, and what your best option is for growing your brand.<\/p>\n","protected":false},"author":193,"featured_media":22088,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[2,6,7,9],"class_list":["post-1197","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-3pl-third-party-logistics","blogcategories-ecommerce-tips","blogcategories-fulfillment","blogcategories-logistics"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.6 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What is Contract Logistics, and How Can It Scale Your Fulfilment? - ShipBob Australia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shipbob.com\/au\/blog\/contract-logistics\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is Contract Logistics, and How Can It Scale Your Fulfilment?\" \/>\n<meta property=\"og:description\" content=\"Ready to outsource logistics? 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