What is Logistics?

Logistics is…

…the integrated planning, design, execution and controlling of the entire materials stream and its respective information stream, thereby guaranteeing:

the right amount
at the right time
the right quality
at the right place
for the right price

Examples of tasks in purchasing and logistics are:

Organization of just in time delivery in the automobile industry (procurement logistics)
Optimization of processing order in production lines (production logistics)
Reorganization of truck routes for home delivery of frozen goods (distribution logistics)

The following three basic functions constitute the essential fields of commercial logistics:

Storage
Transport
Handling

Successful logistics service providers transcend these basic functions and offer additional services. Industry and trade restrict themselves to performing their core functions and logistical services are outsourced.

Today it’s all about ‘’Supply Chain Management’’…

…meaning the process-oriented development, design and directing of all activities starting with the purchasing of raw materials and ending with the sale of products to the consumer.