What is the difference between logistics service providers and freight forwarders?

1, Definition:
Logistics service providers are companies specializing in the management of the entire supply chain. Their services cover the whole process of goods flow from production to final consumers. Logistics service providers usually have huge networks and facilities, which can handle the warehousing, transportation, distribution and management of goods.
Freight forwarder is an intermediary organization that promotes the transportation of goods from one place to another by coordinating the relationship between the owner (consignor) and the transportation company. The duties of freight forwarders usually include selecting the best transportation mode, formulating transportation plans, handling cargo tracking and coordinating all links in the logistics process.
2, Functions:
Functions of logistics service providers:
Warehousing management: provide safe and efficient warehousing services to ensure the smooth flow of goods in the whole supply chain.
Transportation services: the goods are transported from the production site to the destination by land, sea, air, etc.
Supply chain management: coordinate and integrate all links in the supply chain to ensure the best efficiency and reduce costs.
Functions of Freight Forwarders:
Transportation arrangement: select the appropriate transportation mode and carrier to ensure that the goods can be delivered smoothly according to the plan.
Document processing: processing various documents related to cargo transportation, including customs declaration documents, transportation contracts, etc.
Tracking goods: monitor the transportation process of goods, provide real-time information, and ensure that the owner can know the location and status of goods at any time.
3, Role in the supply chain:
Role of logistics service providers:
Improve efficiency: improve the overall efficiency of the supply chain and shorten the delivery cycle by integrating all links.
Reduce costs: reduce transportation and storage costs through large-scale operation and process optimization.
Enhance visibility: provide real-time logistics information to enable enterprises to better manage inventory and respond to market demand.
Role of Freight Forwarders:
Simplify the process: provide a package of logistics solutions for consignors, simplify the logistics process, and reduce the burden of consignors.
Flexibility: select the most appropriate transportation scheme according to the needs of the consignor to improve flexibility and adaptability.
Risk reduction: help consignors avoid potential logistics risks and ensure safe delivery of goods through professional knowledge and experience.
4, Difference and connection:
Difference:
Different scope: the service scope of logistics service providers is broader, covering the whole supply chain; And freight forwarders are more focused on the intermediate links of logistics.
Different responsibilities: logistics service providers are more responsible for the operation of the entire supply chain, including warehousing, transportation, distribution, etc; Freight forwarders are mainly responsible for coordinating transportation and handling relevant documents.
Contact:
Cooperation: in actual business, logistics service providers and freight forwarders usually cooperate to provide customers with comprehensive logistics solutions.
Interdependence: there is an interdependent relationship between logistics service providers and freight forwarders, and their cooperation will help improve the efficiency and competitiveness of the entire supply chain.