Logistics is the process of planning, implementing, and controlling 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 is a part of supply chain management that deals with the overall process of managing how resources are acquired, stored, and transported to their final destination. 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. However, 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. They have also had to better integrate their processes and systems, implementing ways to improve supply chain visibility.
Logistics management involves identifying prospective distributors and suppliers and determining their effectiveness and accessibility. Logistics managers are referred to as logisticians. The importance of logistics is particularly clear when examining the business supply chain. In business logistics, the individual processes involved in moving goods to the right place at the right time can be described under the broad terms "logistics" or "distribution". The act of supervising or managing this far-reaching activity is generally known as "logistics management" or "distribution management".
