What is Logistics? & Logistics Definition

Logistics is an intricate process within supply chain management that controls the efficient, effective, and often reverse flow of goods, services, and related information from their point of origin to their final destination. Its ultimate objective is to satisfy customer needs by ensuring the right product is delivered in the right quantity, at the right time, in the right condition, to the right place, to the right customer, and at the right cost. This comprehensive framework is widely recognized as the “Seven R’s” of logistics management, emphasizing precision and customer-centricity in every step.

While the terms “logistics” and “supply chain management” (SCM) are often used interchangeably, it is crucial to understand their distinct yet interconnected roles. Logistics is a critical component of the broader supply chain management framework. SCM encompasses the entire spectrum of activities, from the strategic sourcing of raw materials to the final delivery of the product, including planning, coordination, and collaboration across all entities involved. Logistics, on the other hand, specifically focuses on the physical movement and storage aspects of this chain. It acts as the operational “glue” that holds the supply chain together, ensuring the seamless execution of SCM strategies and the physical flow of goods.

 

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