GlossaryEN1 min readUpdated: Jun 22, 2026
contract logistics
A pharmaceutical company hands over its entire warehouse management to a third-party logistics provider, with service levels, KPIs, and liability terms locked in by contract—this is contract logistics in practice.
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Source: https://de.wikipedia.org/wiki/Kontraktlogistik
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Logistics Concept
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A pharmaceutical company hands over its entire warehouse management to a third-party logistics provider, with service levels, KPIs, and liability terms locked in by contract—this is contract logistics in practice. One or more logistics functions, typically warehousing, order picking, transportation, and value-added services, are outsourced on a long-term, binding basis rather than arranged job by job. Unlike standard transport contracts, the contract logistics provider assumes process ownership, invests in dedicated infrastructure, and integrates its systems with the client's IT environment. For shippers, the model delivers fixed-cost reduction, scalable capacity during demand peaks, and access to specialist networks without capital expenditure. Contract durations commonly extend over several years.
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