What is Logistics? Pt 1 of 3

What is Logistics? Pt 1 of 3

9/4/2014 Umut Türker 1907 Times Read

Here at FreightArea.com, there are several wonderful blog posts about logistics. There is one post emphasizing the importance of logistics. Another one promotes the efficiencies of outsourcing your logistics needs. Another one stresses the importance of good customer service in a logistics company. The fourth one states that you need to find a trustable logistics company.


But what is logistics? It seems to be an almost scary word, conjuring up a need for a PhD or Post-Graduate degree in Stochastics (an equally scary word). However, the truth is much more friendly. Logistics is simply "the management of the flow of goods between the point of origin and the point of consumption in order to meet some requirements, for example, of customers or corporations. The logistics of physical items usually involves the integration of information flow, material handling, production, packaging, inventory, transportation, warehousing, and often security". In other words, logistics is simply how, what, where, when, and by whom a thing or things will go from Point A to Point B.

There are different concepts, ideas or uses for logistics.

For example, there are emergency logistics. If there is an earthquake, tsunami or civil unrest in one part of the world or country, then there are many things that people in the affected areas will need extremely quickly.


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There are also military logistics, in which one side will try to build and maintain effective supply lines while trying to disrupt or destroy those of the other side.


There are also many topics related to business logistics. This “may have either an internal focus (inbound logistics) or an external focus (outbound logistics), covering the flow and storage of materials from point of origin to point of consumption [otherwise known as supply-chain management]”.