3 Tips for Managing a Logistics Contract Effectively

SSAF Logistics
2 min readDec 6, 2022

A logistics contract is a legal document that is created to bind the relationship between two or more parties. It shows the services to be rendered by the freight forwarder or freight forwarding company on behalf of the shipper for a certain price.

This document is signed by both parties and it also shows details like duration of the agreement, termination of the service and penalties for non-compliance.

Logistics Contract comes in different forms and a few includes Service Level Agreements (SLAs), Bill of Lading, signed Purchase Orders (POs), invoices and quotations.

The logistics contract will have terms and condition that encompasses the rights of the parties involved and a few of these terms and condition can be the amount to be paid for certain services carried out, the due time for the payment, the services to be carried out itself and the duration.

So as to avoid stories that touch, it is required to know how to manage a logistics contract where the obligations of both parties are out in the open, potential risks and any gaps is identified and discussed.

The following tips is required for managing a logistics contract in order to completely comprehend the contract and prevent mishaps:

  • Become familiar with the basics: The basics of a logistics contract will include a signed document approving the quotes’ accuracy, the creation and confirmation of purchase orders, and the logistics providers’ implementation schedule.
  • Communicate: Effective communication is said to be the lifeline of any relationship and this is no different for the contract. Concerns and obligations need to be discussed to reach a feasible conclusion and also to bridge any gaps or mitigate any potential risk.
  • Work with a checklist: This checklist will help outline the job to be done, documents needed, payment for services, delivery requirements and it will also help both parties to accomplish the contract requirements.

A logistics contract’s technical details must be well understood and managed effectively, just like the contract itself. It makes sure that the contracting parties are fairly compensated for upholding their end of the bargain.

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SSAF Logistics

We are largely into air freight logistics, procurement of items from and dollar exchange services. We are fast, safe and reliable.