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Definition of Logistics

June 13, 2019 Rick LaGore

Definition of Logistics

Definition of Logistics

Logistics and logistics management is a subset of processes that fall under supply chain management that plans, executes, reports and coordinates the movement of goods within an organization’s network of stakeholders that include:

  • Suppliers
  • Production & Manufacturing
  • Packaging
  • Distribution
  • Customers

The goal of logistics is to move product efficiently and securely from point A to point B at the least cost and best service.

Components of Logistics Include:

Logistics is managed by companies through a transportation management system (TMS) that allows users to optimize and manage its logistics in a control tower fashion giving all stakeholders full visibility to future, current and past freight movements of goods through its supply chain.

The TMS platform also allows users to report, model, analyze and optimize a shipper’s freight movements for continuous performance improvement.  

Companies can either manage their logistics internally or outsource the activity to a third party logistics company (3PL).

Professional Organizations Associated with 3PL's:

Other Article of Interest:

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