How Do You Define Logistics?

Many people, companies and organizations have attempted to define logistics, but what is it really? If you scour the web you will find a variety of differing opinions. Here are just a few of the logistics definitions floating around online:

“The things that must be done to plan and organize a complicated activity or event that involves many people” -Merriam-Webster Dictionary 

 

“The overall management of the way resources are obtained, stored and moved to the locations where they are required.” -Investopedia

 

“Logistics is the management of the flow of goods between the point of origin and the point of consumption in order to meet some requirements, of customers or corporations.” -Wikipedia

 

“Logistics is the flow of funds, goods, and information between source and consumer.” -UPS

Logistics can get fairly complicated. But at Cimetra, we like to keep things simple for our clients. 

 

By taking a broad snapshot of the practice, you will find that logistics is all about making sure the right items are in the right place at the right time. Logistics makes up the framework of your entire supply management process. 

 

Check out the image below to get an overview of all the components involved in a logistics system:

 

 

In addition to the many elements involved in a logistic’s system, there are also several phases in the actual distribution of the products alone. Here is a brief overview of the stages products go through from production to consumer:

 

Factories - First, the products are manufactured at a factory. 

Depot - After being assembled, the finished products are taken to a warehouse.

Distribution center - Next, a lower level of inventory is sent to a distribution center for order processing, order fulfillment and receiving returned products from customers. 

Transit points - Transit points are then set up for cross docking activities. This is where cargo is reassembled to meet delivery schedules.

Stores - Finally, the product is sent to a store for sale. This could be a small mom and pop business, a supermarket or even a discount store. 

 

When you dive deep into the definition of logistics, it can get somewhat complex. But the good news is that when you go with an experienced third-party logistics provider, you can focus on what you do best - running your business - and leave logistics to the pros.