What is Logistics?

A recent study defined logistics as:

"That part of the supply chain process that plans, implements and controls the efficient flow and storage of goods, services and related information from the point of origin to the point of consumption, in order to meet the customers' requirements."

The elements that make up the modern logistics industry continue to evolve as does the services logistics providers offer. This expansion has been accelerated by three vital trends in the new economy:

• The general trend toward outsourcing,
• The previously unprecedented growth of e-commerce
• The importance of the partnership between the manufacturer, marketer and the /logistics provider.

A recent study found that 95 percent of the U.S.'s chief executives believe they should have some form of logistics strategy, and nearly 50 percent of the nation's CEOs are currently incorporating supply chain planning into their overall business strategies.

Its benefits include:

• Reduced need for personnel
• Reduced transportation and distribution cost
• Improved customer service
• Improved cycle time
• Free-up capital in manufacturers and marketers non-core areas