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Contract logistics is not just about outsourcing

For Logent, contract logistics starts with understanding how logistics operations function in practice, where processes slow down, where flexibility is lost, and where improvements can create long-term operational value.

In this article, Logent experts Johan Edström, Business Development Director, Scandinavian market, and Richard Hjertquist, Business Unit Director, logistics operations for Sweden and Norway, discuss how contract logistics partnerships support more efficient, scalable logistics operations.

Contract logistics as a strategic advantage

Many companies recognize that their logistics operations could be more efficient, but understanding the full potential of improvements in flow, capacity, and operational structure is often challenging.

Logent experts note that companies struggle to maintain efficient processes as supply chains and logistics processes become increasingly complex. Partnering with contract logistics providers can improve operational efficiency, enable scalable growth, and enhance visibility, control, and expertise throughout the value chain.

While some companies may view outsourcing logistics as a loss of control, in reality the opposite is often true. Partnering with the right contract logistics partner can provide benefits ranging from greater operational visibility to improved efficiency and flexibility as well as scalability needed to support long-term growth,” says Edström.

Logent works closely with its clients to help them develop tailored supply chain solutions that improve operational flow, warehouse layouts, inbound structures, and daily processes. By coordinating inbound and outbound freight, managing freight forwarder relationships, and leveraging its global network to secure competitive shipping rates, Logent helps companies reduce complexity, improve efficiency, unlock additional capacity, and build scalable operations that support long-term growth.

“Logistics is our specialty. This combination of deep expertise and close client collaboration enables us to bring structure and data-driven visibility to long-established operations,” explains Hjertquist.elp clients turn supply chain operations into a strategic advantage.

Johan Edström, Business Development Director at Logent, Scandinavian market
Johan Edström
Richard Hjertquist, Business Unit Director for logistics operations, Sweden and Norway
Richard Hjertquist

Different logistics needs across industries

With experience across a broad range of industries, Logent supports clients in developing efficient logistics operations that enhance both business performance and customer experience. The operational needs and drivers behind contract logistics partnerships, however, vary significantly between industries and business models.

For example, we see similar growth challenges across both manufacturing and e-commerce, but they play out in different ways. In manufacturing, higher production volumes put pressure on facilities and internal logistics, making efficiency improvements critical. In e-commerce, the challenge is handling high order volumes and increasingly complex fulfillment requirements while maintaining speed and accuracy.

“Logent has extensive experience supporting both manufacturing and e-commerce companies with scalable logistics solutions tailored to their operational needs and growth ambitions,” Edström adds.

Creating a foundation for scalable growth

Logent builds its contract logistics services on transparency, continuous development, and a clear long-term understanding of how operations should evolve. Rather than simply outsourcing logistics or handing over control, clients gain an experienced partner with specialist expertise while maintaining full visibility, close collaboration, and operational insight throughout the entire process. This partnership-driven approach enables companies to make better-informed decisions, identify new efficiencies, and continuously develop their logistics operations.

A key advantage of outsourcing lies in its ability to accelerate and sustain change more effectively than in-house operations typically can. External partners are often better equipped to respond to shifting conditions, continuously improve performance, and maintain a long-term operational perspective. While internal teams may undertake major development initiatives only occasionally, experienced logistics experts deliver similar transformations multiple times each year across different environments. This broad experience enables faster learning, more confident decision-making, and the application of proven approaches across new contexts.

Through extensive expertise in contract logistics, warehousing, transportation, and end-to-end supply chain operations, Logent brings fresh perspectives on optimizing inbound and outbound flows, enhancing operational efficiency, and scaling businesses without unnecessary investment. Each solution is carefully tailored to the client’s specific requirements, with a strong emphasis on measurable impact, flexibility, and continuous improvement.

“Our role is not only to operate logistics but also to help clients see new possibilities in their supply chain. Our logistics engineers know how to scale operations without necessarily investing more money — just by improving timing, processes, KPI follow-up, and operational efficiency. I think that’s something we are exceptionally good at,” tells Hjertquist.

Team discussion during the setup of a new warehouse operation
Close collaboration on the warehouse floor helps ensure smooth transitions and lasting operational improvements.

Turning data and visibility into better decisions

As outsourcing partnerships mature, the real value increasingly comes from improved visibility and the ability to make better-informed decisions. Access to accurate operational data enables companies to identify inefficiencies, understand cost drivers, and evaluate the wider business impact of different logistics models.

Often, companies initially approach logistics challenges with one preferred solution in mind, without fully considering the operational and financial trade-offs involved. Logent experts explain that one of the key responsibilities of an experienced logistics partner is to present alternative solutions and help customers evaluate whether a particular approach truly supports the broader operational and financial goals of the company. By offering different perspectives, considering a wide range of scenarios, and providing tailored solution models, Logent can create significant value and support more informed decision-making.

Edström emphasizes the necessity for companies to carefully balance the trade-offs between service levels and costs. For example, reducing delivery times from 48 hours to 24 hours may increase logistics costs by around 20%. While faster delivery is possible, in many markets a 48-hour delivery window is considered sufficient, allowing costs to remain at a more sustainable level.

Choosing the right logistics partner

For many companies, the right logistics partner brings the expertise needed to modernize long-established processes and improve operational transparency.

By combining data-driven insights with industry expertise, Logent is able to demonstrate concrete improvement opportunities and measurable business impact. This organized method allows for clear promises regarding both operational and financial improvements—like reducing costs by 15–20%—while also boosting efficiency, scalability, and overall warehouse performance.

The objective throughout customer dialogue and the partnership evaluation process is to help customers understand not only the potential cost savings but also the long-term operational improvements, scalability, and strategic value of the partnership. As a result, customer dialogue focuses on building a clear, shared understanding of how the future-state solution differs from and improves upon the current operating model.

“A key aspect of contract logistics negotiations is ensuring that the current setup and a future outsourced solution can be evaluated on a comparable basis. While many perceive this as challenging, a structured and data-driven approach enables a transparent and well-founded comparison.

Historically, we have been successful in helping companies clarify this comparison by creating transparency, providing evidence-based insight, and visualizing the differences between current and future operating models,” emphasizes Edström.

Equally important is assuring customers that transitions, process improvements, and organizational changes can be implemented smoothly without disrupting day-to-day operations. The goal is to maintain continuity throughout the transition, enabling customers to continue serving their own clients efficiently while new systems and ways of working are introduced in the background.

“We often see that when transitions and operational improvements are implemented correctly, customers are able to maintain full continuity in their day-to-day operations while still achieving measurable efficiency gains. We have seen this across multiple customer cases and operational environments.” Hjertquist states.

For 20 years, Logent has partnered with customers to turn logistics challenges into opportunities. We look forward to exploring how our tailored solutions can support your business. 

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