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Contract logistics is the outsourcing of various elements of logistics and distribution by companies to third-party logistics solutions providers. Companies outsource some or all of their SCM functions such as transportation, warehousing, location tracking, and integration operation services. Often, third-party logistics solutions providers go beyond logistics and offer VAS such as inventory management, cross-docking, door-to-door delivery, and packaging of products. The need for efficiency in delivery, inventory management, and freight forwarding is propelling the demand for contract logistics in South America.

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