Logistics is the process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods, services, and related information from the point of origin to the point of consumption according to the needs of customers. It involves managing how resources are acquired, stored, and transported to their final destination. Logistics management includes identifying prospective distributors and suppliers and determining their effectiveness and accessibility. The goal of logistics is to meet customer requirements in a timely, cost-effective manner.
Originally, logistics played a vital role in orchestrating the movement of military personnel, equipment, and goods. Today, the term logistics applies to any context that requires moving commercial goods within the supply chain. Suppliers, manufacturers, distributors, and retailers have had to improve their logistics processes to meet the demand for faster, more convenient delivery of a large number and variety of goods.
Logistics is now integral to the global supply chain process, and it encompasses the procurement, storage, and distribution of materials that power the economy. The logistics industry is not limited to the actual movement of products from one place to another, but also includes the coordination of resources such as people, materials, inventory, and equipment.
Logistics management involves several components, including inbound logistics, outbound logistics, reverse logistics, and third-party logistics. Inbound logistics refers to the process of receiving and storing goods from suppliers and vendors, while outbound logistics refers to the process of selecting, packing, and shipping products to customers. Reverse logistics involves the process of returning goods from customers and redistributing them to other customers or back to the supplier. Third-party logistics refers to the outsourcing of logistics activities to a third-party provider.
