How do logistic companies make profits

Logistics company what do they do. Logistic companies have various streams for profits. Th. expenses are for the. office space, warehouse space, transportation, couriers and. For every work that is done for a client they have a set rate with the supplier. They over charge the customer by 10% to 15% of the supplier charge. For e.​ g. Truck pickup from supplier’s factory is Rs.1000, the courier company will charge Rs.1200 to the client. Similarly it is in every operation that they do for the client. For clearing goods at the port or airports they charge by shipping bills or airway bills irrespective of the value of the invoice. They also charge clients for keeping goods in the warehouse for more than 48 hours. Sometimes inspections are done in the warehouse by the clientand rental is charged.​ If the logistic company does not have a good accounting system it will be very difficult for them to make money. The money is made on volume of work versus billing which is more than 15% to 20% of their spending. Communication is a very important part in this work and that is.