Business Dictionary
Logistics
Definition
The detailed coordination of a complex operation involving many people, facilities, or supplies.
Deep Dive
Logistics is the detailed planning, implementation, and control of the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customer requirements. It is a critical component within the broader supply chain management, specifically focusing on the physical movement and storage aspects. Key activities in logistics include transportation, warehousing, inventory management, material handling, order fulfillment, and information flow.
Examples & Use Cases
- 1A global e-commerce giant planning optimal routes for thousands of delivery trucks to ensure next-day delivery promises are met
- 2A pharmaceutical company managing temperature-controlled warehousing and transportation for sensitive vaccines across different countries
- 3A manufacturing firm coordinating the just-in-time delivery of components from various suppliers to its assembly line to minimize inventory holding costs
Related Terms
Supply Chain ManagementTransportationWarehousing