What is the meaning of Fulfillment, Trade Discount and Contract Logistics

In today’s article, we would be analysing the meanings behind the terms ‘fulfillment’, ‘trade discount’ and ‘contract logistics’.

Exporting and Importing can often be an extremely complicated and mundane process as there are so many rules, regulations as well as countless  number of procedures to adhere to. This, many a times, may require to prepare and submit documents for import and export. Usually, freight forwarders would prepare it  for us, but it is also good to know for ourselves as to how to complete the relevant documents by understanding what the terms mean.

As such, in our new article series titled “Export Terms”, we would  introduce you to all the various terms used in the international trade, be it through air, land or sea freight. We would roll out one related article on a regular basis, which would help you to get a comprehensive understanding as to the document preparation for the purpose of doing trade internationally.

Meaning of Fulfillment

A fulfillment essentially refers to process of taking an order by a company and carrying out the order by delivering the items straight to the customer. Logisitcs companies such as Kargo do offer such fulfillment services. In today’s day and age, electronic commerce (e commerce) companies usually make use of fulfillment services. Fulfillment services also make use of pick ups from warehouses as well as packing and labeling the items that are being shipped straight to the customer. If you are interested to know more about Kargo’s services for your e commerce firm, click here to submit and inquiry.

goods that you can or cannot import to indonesia
We do offer fulfillment services for Businesses like yours. Send us pricelist request at www.kargo.co.id to express your interest!

Meaning of Trade Discount

In layman terms, a trade discount basically refers to a type of discount given usually by suppliers. It is where for instance, a wholesaler or retailer that buys goods from the supplier, ends up paying a slightly lower price than the actual catalog rates because of the discount given by the supplier. This discount is usually given to encourage the wholesalers and retailers to purchase items from the supplier in bulk.

Meaning of Contract Logistics

Lastly, contract logistics refer to a contract with a third party. A company would outsource all the logistics related work to this third party, who  is basically responsible for managing resource and logistics related work. As such, they manage designing of supply chain, warehousing, transporting and many more.

However, these companies usually operate on a contract basis. Some of the well known names of contract logistics companies include DHL, United Parcel Services (UPS) along with Kuehne + Nagel. Contract logistics companies are popular as they are efficient and have specialised services depending on the industry

If you have a question, comment below or click here. To see more of Kargo’s various logistics services for you and your business, click here. Share this article!

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