Logistics - Wikipedia
Jump to content
From Wikipedia, the free encyclopedia
"Logistics Management" redirects here. For the magazine, see
Logistics Management (magazine)
For other uses, see
Logistics (disambiguation)
Management of the flow of resources
warehouse
in
South Jersey
, a U.S.
East Coast epicenter
for logistics and warehouse construction outside
Philadelphia
, where trucks deliver slabs of
granite
Logistics
is the part of
supply chain management
that deals with the efficient forward and
reverse flow of goods
, services, and related information from the point of origin to the
point of consumption
according to the needs of customers,
and a
logistician
is a professional working in the field of logistics management. Logistics management is a component that holds the
supply chain
together.
The resources managed in logistics include physical goods such as materials, equipment, and foodstuffs, and also intangible items such as time and information.
Military logistics
is concerned with maintaining army supply lines with food, armaments, ammunition, and spare parts, apart from the transportation of troops themselves. Civil logistics deals with acquiring, moving, and storing raw materials, semi-finished goods, and finished goods. For organisations that provide
garbage collection
, mail deliveries,
public utilities
, and after-sales services, logistical problems must be addressed.
Logistics deals with the movement of materials or products from one facility to another; it does not include material flow within production or assembly plants, such as
production planning
or
single-machine scheduling
Logistics accounts for a significant amount of the operational costs of an organisation or country. Dedicated
simulation software
can model, analyse, visualise, and optimize logistic complexities. Minimizing resource use is a common motivation in all logistics fields.
Nomenclature
edit
A warehouse implementing a pallet rack storage system
logistics specialist
inventories supplies in a storeroom aboard the aircraft carrier
USS
George H. W. Bush
during
Operation Enduring Freedom
in the
Persian Gulf
in October 2011.
The term
logistics
is attested in English from 1846. It is from the French
logistique
, which was either coined or popularized by a
Swiss military
officer and writer,
Antoine-Henri Jomini
, who defined it in his
Summary of the Art of War
Précis de l'Art de la Guerre
). The term appears in the 1830 edition, then titled
Analytic Table
Tableau Analytique
),
and Jomini explains that it is derived from
French
logis
lit.
lodgings
(cognate to English
lodge
), in the terms
French
maréchal des logis
lit.
marshall of lodgings
and
French
major-général des logis
lit.
major-general of lodging
Autrefois les officiers de l’état-major se nommaient: maréchal des logis, major-général des logis; de là est venu le terme de logistique, qu’on emploie pour désigner ce qui se rapporte aux marches d’une armée.
Formerly the officers of the general staff were named marshal of lodgings, major-general of lodgings; from there came the term logistics [
logistique
], which we employ to designate those who are in charge of the functioning of an army.
The term and its etymology were criticized in 1832 by
Georges de Chambray
fr
Logistique
: Ce mot me paraît être tout-à-fait nouveau, car je ne l'avais encore vu nulle part dans la littérature militaire. … il paraît le faire dériver du mot
logis
, étymologie singulière …
Logistic
: This word appears to me to be completely new, as I have not yet seen it anywhere in military literature. … he appears to derive it from the word
lodgings
logis
], a peculiar etymology …
Chambray also notes that the term
logistique
was present in the
Dictionnaire de l'Académie française
as a synonym for
algebra
. The French word:
logistique
is a
homonym
of the existing mathematical term, from
Ancient Greek
λογῐστῐκός
romanized
logistikós
, a traditional division of
Greek mathematics
; the mathematical term is presumably the origin of the term
logistic
in
logistic growth
and related terms. Some sources give this instead as the source of
logistics
either ignorant of Jomini's statement that it was derived from
logis
, or dubious and instead believing it was in fact of Greek origin, or influenced by the existing term of Greek origin.
Definition
edit
Jomini originally defined logistics as
... l'art de bien ordonner les marches d'une armée, de bien combiner l'ordre des troupes dans les colonnes, les tems [temps] de leur départ, leur itinéraire, les moyens de communications nécessaires pour assurer leur arrivée à point nommé ...
... the art of well-ordering the functionings of an army, of well combining the order of troops in columns, the times of their departure, their itinerary, the means of communication necessary to assure their arrival at the right time ...
The
Oxford English Dictionary
defines logistics as "the branch of
military science
relating to procuring, maintaining and transporting material, personnel and facilities". However, the
New Oxford American Dictionary
defines logistics as "the detailed coordination of a complex operation involving many people, facilities, or supplies", and the Oxford Dictionary on-line defines it as "the detailed organization and implementation of a complex operation".
As such, logistics is commonly seen as a branch of engineering that creates "people systems" rather than "machine systems".
According to the Council of Supply Chain Management Professionals (previously the Council of Logistics Management),
logistics is the process of planning, implementing and controlling procedures for the efficient and effective
transportation and storage of goods including services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements and includes inbound, outbound, internal and external movements.
Academics and practitioners traditionally refer to the terms
operations
or
production
management when referring to physical transformations taking place in a single business location (factory, restaurant or even bank clerking) and reserve the term logistics for activities related to distribution, that is, moving products on the territory. Managing a distribution center is seen, therefore, as pertaining to the realm of logistics since, while in theory, the products made by a factory are ready for consumption they still need to be moved along the distribution network according to some logic, and the distribution center aggregates and processes orders coming from different areas of the territory. That being said, from a modeling perspective, there are similarities between
operations management
and logistics, and companies sometimes use hybrid professionals, with for example a "Director of Operations" or a "Logistics Officer" working on similar problems. Furthermore, the term "
supply chain management
" originally referred to, among other issues, having an integrated vision of both production and logistics from the point of origin to the point of production.
10
Logistics activities
edit
This section
may contain
original research
Please
improve it
by
verifying
the claims made and adding
inline citations
. Statements consisting only of original research should be removed.
January 2019
Learn how and when to remove this message
Loading of a
thermal oxidizer
in preparation for its transport to a manufacturing plant
forklift
truck loads a pallet of humanitarian aid to
Pakistan
on board a
C-17
aircraft following
devastating floods
in the country in August 2010.
The Logistics Centre of the
Finnish Red Cross
in
Tampere
, Finland
Logistical activities can be divided into three main areas: order processing, inventory management, and
freight transportation
. Modern freight transportation relies heavily on
fleet management
to improve efficiency and safety. Traditionally, order processing was a time-consuming activity, but with new technologies such as bar code scanning and computers, the availability of stocks can be checked in real time. The purpose of having an inventory is to reduce the overall logistical cost while improving service to customers. Having a stockpile of finished goods beforehand can reduce the frequency of transportation and cope with the randomness of customer demands. However, maintaining an inventory requires capital investment and maintaining a warehouse. Freight transportation is a central part of logistics and allows access to broad markets. Transportation policies and warehouse management are closely intertwined.
The rise of e-commerce has led to the development of "e-logistics". Compared to traditional logistics, e-logistics handles parcels valued at less than a hundred US dollars and delivers them to customers scattered across various destinations worldwide. In e-logistics, customer demand tends to come in waves, unlike in traditional logistics, where demand is more consistent.
Inbound logistics
is one of the primary logistics processes, focusing on the purchasing and arrangement of the inbound movement of materials, parts, or unfinished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores.
Outbound logistics
is the process related to the storage and movement of the final product. The related information flows from the end of the production line to the end user.
Given the services performed by logisticians, the main fields of logistics can be broken down as follows:
Procurement
logistics
, which consists of
market research
, requirements planning, make-or-buy decisions, supplier management, ordering, and order control. The targets in procurement logistics might be contradictory: maximizing efficiency by concentrating on core competencies, outsourcing while maintaining the company's autonomy, or minimizing procurement costs while maximizing security within the supply process.
Advance logistics
involves the activities required to set up or establish a supply base in advance of other resources arriving. The term is used, for example, in military logistics for the assembly of resources ahead of troop arrival or the delivery of infrastructure components.
11
Global logistics
is technically the process of managing the "flow" of goods through a supply chain from its place of production to other parts of the world. This often requires an intermodal transport system via ocean, air, rail, and truck. The effectiveness of global logistics is measured in the
Logistics Performance Index
Distribution logistics
has, as its main task, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Modern distribution often includes the use of a
vehicle tracking system
to monitor shipments by collecting real-time
vehicle location data
. Distribution logistics is necessary because production time, place, and quantity differ with the time, place, and quantity of consumption.
12
Disposal logistics
has the function of reducing logistics cost(s) and enhancing service(s) related to the disposal of waste produced during a business's operation.
Reverse logistics
denotes all operations related to the reuse of products and materials. The reverse logistics process includes the management and the sale of surpluses, as well as products being returned to vendors from buyers. It is "the process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin to recapture value or proper disposal".
13
More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. The opposite of reverse logistics is
forward logistics
Green logistics
describes all attempts to measure and minimize the ecological impact of logistics activities, including all activities of the forward and reverse flows. This can be supported by
fleet digitalization
initiatives aimed at optimizing routes and reducing fuel consumption.
RAM logistics
(see also
Logistic engineering
) combines both
business logistics
and
military logistics
since it concerns highly complicated technological systems for which
reliability
availability
and
maintainability
are essential, e.g.,
weapon system
and military supercomputers.
Asset control logistics
: companies in the retail channels, both organized retailers and suppliers, often deploy assets required for the display, preservation, and promotion of their products. This can involve using a
tracking system
to monitor the location and status of these assets.
Humanitarian logistics
or
emergency logistics
: these terms are used by the logistics, supply chain, and manufacturing industries to denote specific time-critical modes of transport used to move goods rapidly in the event of an
emergency
14
The reason for enlisting emergency logistics services could be a production delay or anticipated production delay, or an urgent need for specialized equipment to prevent events such as aircraft being grounded (also known as "
aircraft on ground
"—AOG), ships being delayed, or telecommunications failure. Humanitarian logistics involves governments, the military,
aid agencies
, donors, non-governmental organizations, and emergency logistics services are typically sourced from a specialist provider.
14
15
16
In addition, the term
production logistics
describes logistic processes within a value-adding system (e.g., a factory or a mine). Production logistics aims to ensure that each machine and workstation receives the right product in the correct quantity and quality at the right time. The concern is with production, testing, transportation, storage, and supply. Production logistics can operate in existing as well as new plants. Since manufacturing in an existing plant is a constantly changing process, machines are exchanged and new ones added, which allows for improving the production logistics system accordingly.
17
Production logistics provides the means to achieve customer response and capital efficiency.
Track and trace
solutions, which provide visibility of products through the production line, are an important part of modern production logistics, especially in the
automotive
and
medical
industries.
The term
construction logistics
has also been employed by civilizations for thousands of years.
citation needed
Now, construction logistics is an important part of the sector. In recent years, it has emerged as a distinct field of study within supply chain management and logistics. Modern construction logistics uses
automatic vehicle location (AVL)
to manage the movement of heavy equipment and materials.
Seven R's
edit
This section
needs expansion
with: a graphical representation of the Seven R's. You can help by
adding missing information
November 2022
The Seven R's is a popular concept used to enforce best practices in logistics management which consists of the following:
18
Right product (including the right information about it)
(At) right quantity
Right time
Right condition
Right place
(to) the right customer
(with the) right (financial) resources
Military logistics
edit
This section
needs additional citations for
verification
Please help
improve this article
by
adding citations to reliable sources
in this section. Unsourced material may be challenged and removed.
April 2026
Learn how and when to remove this message
Main article:
Military logistics
The
Punjab Regiment
using mules for transporting cargo in
Burma
during
World War II
. Animals have been used for logistical transport throughout history; the
Roman army
preferred mules over donkeys for cargo transport.
19
In military science, maintaining one's supply lines while disrupting those of the enemy is a crucial element of
military strategy
, since an armed force without resources and transportation is defenseless. The historical leaders
Hannibal
Alexander the Great
, and the
Duke of Wellington
are considered
by whom?
to have been logistical geniuses: Alexander's expedition benefited considerably from his meticulous attention to the provisioning of his army,
20
Hannibal is credited to have "taught logistics" to the
Romans
during the
Punic Wars
21
and the success of the Anglo-Portuguese army in the
Peninsula War
was due to the effectiveness of Wellington's supply system, despite the numerical disadvantage.
22
The defeat of the British in the
American War of Independence
and the defeat of the
Axis
in the
African theater
of
World War II
are attributed by some scholars to logistical failures.
23
Militaries have a significant need for logistics solutions and so have developed advanced implementations.
Integrated logistics support
(ILS) is a discipline used in military industries to ensure an easily supportable system with a robust customer service (logistic) concept at the lowest cost and in line with (often high) reliability, availability, maintainability, and other requirements, as defined for the project.
In
military logistics
Logistics Officers
manage how and when to move resources to the places they are needed.
Supply chain management
in military logistics often deals with a number of variables in predicting cost, deterioration,
consumption
, and future demand. The
United States Armed Forces
' categorical
supply classification
was developed in such a way that categories of supply with similar consumption variables are grouped together for planning purposes. For instance, peacetime consumption of ammunition and fuel will be considerably lower than wartime consumption of these items, whereas other classes of supply such as subsistence and clothing have a relatively consistent consumption rate regardless of war or peace.
Some classes of supply have a linear demand relationship: as more troops are added, more supply items are needed; or as more equipment is used, more fuel and ammunition are consumed. Other classes of supply must consider a third variable besides usage and quantity: time. As equipment ages, more and more
repair parts
are needed over time, even when usage and quantity stay consistent. By recording and analyzing these trends over time and applying them to future scenarios, the
US Armed Forces
can accurately supply troops with the items necessary at the precise moment they are needed.
24
History has shown that good logistical planning creates a lean and efficient fighting force. The lack thereof can lead to a clunky, slow, and ill-equipped force with too much or too little supply.
Business logistics
edit
Business logistics
Distribution methods
Distribution centers
Digital distribution
Order processing
Trade routes
Order fulfillment
Cross-docking
Sustainable distribution
Commercial vehicle
Distribution resource planning
Journey planner
Third-party logistics
Management systems
Packaging and labeling
Fleet management
Warehouse management system
Supply chain
Delivery (commerce)
Field inventory management
Inventory turnover
Stock keeping unit
Industry classification
Road transport
Maritime transport
Commercial aviation
forklift
operator stacking warehouse of goods on pallets in
Allentown, Pennsylvania
, in April 2004
One definition of business logistics speaks of "having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer".
25
Business logistics incorporates all
industry sectors
and aims to manage the fruition of
project life cycles
supply chains
, and resultant efficiencies.
The term
business logistics
has evolved since the 1960s
26
due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for professionals called supply chain logisticians.
In business, logistics may have either an internal focus (inbound logistics) or an external focus (outbound logistics), covering the flow and storage of materials from point of origin to point of consumption, a key factor in
supply-chain management
. The main functions of a qualified logistician include
inventory management
purchasing
, transportation,
warehousing
, consultation, and the organizing and
planning
of these activities. Logisticians combine professional knowledge of each of these functions to coordinate resources in an organization.
There are two fundamentally different forms of logistics: one optimizes a steady flow of material through a network of transport links and storage nodes, while the other coordinates a
sequence
of resources to carry out some
project
, such as restructuring a warehouse.
journey planner
or
route optimization
software is often used to solve the complex logistical problem of determining the most efficient delivery paths for a fleet of vehicles. These systems, which are a key component of an
intelligent transportation system
, analyze factors like traffic, delivery windows, and vehicle capacity to create optimized routes that reduce fuel consumption and improve on-time performance.
27
Nodes of a distribution network
edit
A distribution network would require several intermediaries to bring consumer or industrial goods from manufacturers to a user. Intermediaries would markup the costs of the products during distribution, but benefit users by providing lower transportation costs than the manufacturers. The number of intermediaries required for the distribution network depends upon the types of goods being distributed. For example, consumer goods such as cosmetics and handicrafts may not require any intermediaries as they can be sold door-to-door or can be obtained from local flea markets. For industrial goods such as raw materials and equipment, intermediaries are not needed because manufacturers can sell a large number of goods to a user. Generally, there are three types of intermediaries, namely: agent/broker, wholesaler, and retailer.
The nodes of a distribution network include:
Factories where products are manufactured or assembled
depot
or deposit, a standard type of warehouse for storing merchandise (high level of inventory)
Distribution centers
for
order processing
and
order fulfillment
(lower level of inventory) and also for receiving returning items from clients. Typically, distribution centers are way stations for products to be disbursed further down the supply chain. They usually do not ship inventory directly to customers, whereas fulfillment centers do.
citation needed
Transit points for
cross-docking
activities, which consist of reassembling cargo units based on deliveries scheduled (only moving merchandise)
Traditional "
mom-and-pop
" retail stores, modern supermarkets,
hypermarkets
discount stores
or also voluntary chains,
consumers' co-operatives
, groups of consumers with
collective buying power
. Note that
subsidiaries
will be mostly owned by another company and
franchisers
, although using other company brands, actually own the point of sale.
Logistic families and metrics
edit
A logistic family is a set of products that share a common characteristic: weight and volumetric characteristics, physical storing needs (temperature, radiation, etc.), handling needs, order frequency, package size, etc. The following metrics may be used by the company to organize its products in different families:
28
Physical metrics used to evaluate inventory systems include stocking capacity, selectivity, superficial use, volumetric use, transport capacity, transport capacity use.
Monetary metrics used include space holding costs, such as building, shelving, and services, and handling costs, such as people, handling machinery, energy, and maintenance.
Other metrics may present themselves in both physical or monetary form, such as the standard
inventory turnover
Handling and order processing
edit
Unit loads
, which serve a protective function, for transportation of luggage at the airport
Unit loads
are combinations of individual items which are moved by handling systems, usually employing a
pallet
of normed dimensions.
29
Handling systems include: trans-pallet handlers, counterweight handler, retractable mast handler, bilateral handlers, trilateral handlers,
AGV
and other handlers.
Storage systems include: pile stocking, cell
racks
(either static or movable), cantilever racks and gravity racks.
30
Order processing
is a sequential process involving: processing withdrawal list, picking (selective removal of items from loading units), sorting (assembling items based on the destination), package formation (weighting, labeling, and packing), order consolidation (gathering packages into loading units for transportation, control and
bill of lading
).
31
Picking
can be both manual or automated. Manual picking can be both man-to-goods, i.e. operator using a cart or conveyor belt, or goods-to-man, i.e. the operator benefiting from the presence of a mini-load
ASRS
, vertical or
horizontal carousel
or from an Automatic Vertical Storage System (AVSS). Automatic picking is done either with
dispensers
or depalletizing robots.
Sorting
can be done manually through carts or conveyor belts, or automatically through
sorters
Transportation
edit
Main article:
Cargo
Consolidating small shipments into large shipments can help to save transportation costs. There are three methods to do this: facility consolidation, multi-stop consolidation, and temporal consolidation. Facility consolidation uses the
economics of scale
by transporting small shipments over short distances and large shipments over long distances. Multi-stop consolidation makes multiple stops to consolidate small shipments in the case of
less-than-truckload shipping
. Temporal consolidation adjusts the shipping schedules forwards or backward so as to make a single large shipment rather than several small shipments over time.
Cargo can be consolidated into pallets or containers. There are five basic modes of transport, namely, ship, rail, truck, air, and pipeline operated by different
carrier
. These shipping methods can be combined in various ways such as
intermodal transport
(no handling),
multimodal transport
, and
combined transport
(minimal road transport). A shipper chooses a carrier by taking into account the total cost of shipment and transit time. Air is the most expensive type of transport, followed by truck, rail, pipeline, and ship.
Cargo can be organized in different
shipment categories
Unit loads
are usually assembled into higher standardized units such as:
ISO containers
swap bodies
or
semi-trailers
. Especially for very long distances, product transportation will likely benefit from using different transportation means: When moving cargo, typical constraints are maximum weight and
volume
Operators involved in transportation include: all train, road vehicles, boats, airplanes companies,
couriers
freight forwarders
and
multi-modal transport operators
Merchandise being transported internationally is usually subject to the
Incoterms
standards issued by the
International Chamber of Commerce
Configuration and management
edit
LIFO
rack system for storage of motorcycles
In this particular airline logistic network,
Denver
serves as a network
hub
for the
Midwestern U.S.
In the logistics business, a logistical system is designed at a minimum cost based on the expected customer service level. As the service improves, the number of sales also increased. As service is further improved, more sales are captured from competing providers. Further increase in customer service levels after these only increases sales marginally.
Similarly to production systems, logistic systems need to be properly configured and managed. Actually a number of methodologies have been directly borrowed from
operations management
such as using
economic order quantity
models for managing inventory in the nodes of the network.
32
Distribution resource planning
(DRP) is similar to
MRP
, except that it does not concern activities inside the nodes of the network but planning distribution when moving goods through the links of the network.
Traditionally in logistics, configuration may be at the level of the warehouse (
node
) or at level of the distribution system (
network
).
Regarding a single warehouse, besides the issue of designing and building the warehouse, configuration means solving a number of interrelated technical-economic problems: dimensioning
rack
cells, choosing a
palletizing
method (manual or through
robots
), rack dimensioning and design, number of racks, number and typology of retrieval systems (e.g.
stacker cranes
). Some important constraints have to be satisfied: fork and load beams resistance to
bending
and proper placement of
sprinklers
. Although
picking
is more of a tactical planning decision than a configuration problem, it is important to take it into account when deciding the layout of the racks inside the warehouse and buying tools such as handlers and motorized carts since once those decisions are taken they will work as constraints when managing the warehouse, the same reasoning for
sorting
when designing the conveyor system or installing automatic
dispensers
Configuration at the level of the distribution system concerns primarily the problem of
location
of the nodes in geographic space and distribution of
capacity
among the nodes. The first may be referred to as
facility location
(with the special case of
site selection
) while the latter to as capacity allocation. The problem of outsourcing typically arises at this level: the nodes of a
supply chain
are very rarely owned by a single enterprise. Distribution networks can be characterized by numbers of levels, namely the number of intermediary nodes between
supplier
and consumer:
Direct store delivery
, i.e. zero levels
One level network: central warehouse
Two level network: central and peripheral warehouses
This distinction is more useful for modeling purposes, but it relates also to a tactical decision regarding
safety stocks
: considering a two-level network, if safety inventory is kept only in peripheral warehouses then it is called a dependent system (from suppliers), if safety inventory is distributed among central and peripheral warehouses it is called an independent system (from suppliers).
28
Transportation from producer to the second level is called primary transportation, from the second level to a consumer is called secondary transportation.
Although configuring a distribution network from zero is possible, logisticians usually have to deal with restructuring existing networks due to presence of an array of factors: changing demand, product or process innovation, opportunities for outsourcing, change of government policy toward
trade barriers
, innovation in transportation means (both
vehicles
or
thoroughfares
), the introduction of
regulations
(notably those regarding pollution) and availability of ICT supporting systems, such as
ERP
or
e-commerce
Once a logistic system is configured, management, meaning tactical decisions, takes place, once again, at the level of the warehouse and of the distribution network. Decisions have to be made under a set of
constraints
: internal, such as using the available infrastructure, or external, such as complying with the given product
shelf lifes
and
expiration dates
At the warehouse level, the logistician must decide how to distribute merchandise over the racks. Three basic situations are traditionally considered: shared storage, dedicated storage (rack space reserved for specific merchandise) and class-based storage (class meaning merchandise organized in different areas according to their access index).
Picking
efficiency varies greatly depending on the situation.
31
For a man to goods situation, a distinction is carried out between high-level picking (vertical component significant) and low-level picking (vertical component insignificant). A number of tactical decisions regarding picking must be made:
Routing path: standard alternatives include transversal routing, return routing, midpoint routing, and largest gap return routing
Replenishment method: standard alternatives include equal space supply for each product class and equal time supply for each product class.
Picking logic: order picking vs batch picking
At the level of the distribution network, tactical decisions involve mainly
inventory control
and
delivery
path optimization. Note that the logistician may be required to manage the
reverse flow
along with the forward flow.
Warehouse management system and control
edit
Warehouse management systems
(WMS) can differ significantly from
warehouse control systems
(WCS), although there is some overlap in functionality. A WMS plans a weekly activity forecast based on such factors as statistics and
trends
, whereas a WCS acts like a floor supervisor, working in real-time to get the job done by the most effective means. For example, a WMS can tell the system that it is going to need five of
stock-keeping unit
(SKU) A and five of SKU B hours in advance, but by the time it acts, other considerations may have come into play or there could be a logjam on a conveyor. A WCS can prevent that problem by working in real-time and adapting to the situation by making a last-minute decision based on current activity and operational status. Working
synergistically
, WMS and WCS can resolve these issues and maximize
efficiency
for companies that rely on the effective operation of their warehouse or distribution center.
33
Logistics outsourcing
edit
This section
needs additional citations for
verification
Please help
improve this article
by
adding citations to reliable sources
in this section. Unsourced material may be challenged and removed.
Find sources:
"Logistics"
news
newspapers
books
scholar
JSTOR
October 2025
Learn how and when to remove this message
Logistics outsourcing involves a relationship between a company and an LSP (logistic service provider), who, when compared with basic logistics services, has more customized offerings, encompasses a broad number of service activities, and is characterized by a long-term orientation; thus the relationship has a strategic nature.
34
Outsourcing does not have to be complete externalization to an LSP, but can also be partial:
A single contract for supplying a specific service on occasion
Creation of a
spin-off
Creation of a
joint venture
Third-party logistics
(3PL) involves using external organizations to execute logistics activities that have traditionally been performed within an organization itself.
35
According to this definition, third-party logistics includes any form of outsourcing of logistics activities previously performed in house. For example, if a company with its own
warehousing facilities
decides to employ external transportation, this would be an example of third-party logistics. Logistics is an emerging business area in many countries. External 3PL providers have evolved from merely providing logistics capabilities to becoming real orchestrators of supply chains that create and sustain a competitive advantage, thus bringing about new levels of logistics outsourcing.
36
The concept of a
fourth-party logistics
(4PL) provider was first defined by Andersen Consulting (now
Accenture
) as an integrator that assembles the resources, planning capabilities, and technology of its own organization and other organizations to design, build, and run comprehensive supply chain solutions. Whereas a third-party logistics (3PL) service provider targets a single function, a 4PL targets management of the entire process. Some
who?
have described a 4PL as a general contractor that manages other 3PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility of a complete process for the customer.
Horizontal alliances between logistics service providers
edit
Horizontal
business alliances
often occur between logistics service providers, i.e., the cooperation between two or more logistics companies that are potentially competing.
37
In a horizontal alliance, these partners can benefit twofold. On one hand, they can "access tangible resources which are directly exploitable". In this example extending common transportation networks, their warehouse infrastructure and the ability to provide more complex service packages can be achieved by combining resources. On the other hand, partners can "access intangible resources, which are not directly exploitable". This typically includes know-how and information and, in turn, innovation.
37
Logistics automation
edit
Main article:
Logistics automation
An
automated storage and retrieval system
used by both the
U.S. military
at
March Air Reserve Base
in
Riverside County, California
, in December 1995
Logistics automation
is the application of computer software or
automated
machinery to improve the efficiency of logistics operations. This typically refers to operations within a warehouse or distribution center with broader tasks undertaken by
supply chain engineering
systems and
enterprise resource planning
systems.
Industrial machinery can typically identify products through either
barcode
or
RFID
technologies. Information in traditional bar codes is stored as a sequence of black and white bars varying in width, which when read by laser is translated into a digital sequence, which according to fixed rules can be converted into a decimal number or other data. Sometimes information in a bar code can be transmitted through radio frequency, more typically radio transmission is used in RFID tags. An RFID tag is a card containing a memory chip and an antenna that transmits signals to a reader. RFID may be found on merchandise, animals, vehicles, and people as well.
Professions and organizations
edit
Staff
edit
A logistician is a professional logistics practitioner. Professional logisticians are often certified by professional associations. One can either work in a pure logistics company, such as a shipping line, airport, or
freight forwarder
, or within the logistics department of a company. However, as mentioned above, logistics is a broad field, encompassing procurement, production, distribution, and disposal activities. Hence, career perspectives are broad as well. A new trend
as of?
in the industry is the 4PL, or fourth-party logistics, firms, consulting companies offering logistics services.
citation needed
Academic institutions
edit
Some universities and academic institutions train students as logisticians, offering undergraduate and postgraduate programs. A university with a primary focus on logistics is
Kühne Logistics University
in Hamburg, Germany. It is non-profit and supported by Kühne-Foundation of the logistics entrepreneur
Klaus Michael Kühne
citation needed
Organizations
edit
The
Chartered Institute of Logistics and Transport
(CILT), established in the United Kingdom in 1919, received a
Royal Charter
in 1926. The Chartered Institute is one of the
professional bodies
or institutions for the logistics and transport sectors that offer
professional qualifications
or degrees in logistics management. CILT programs can be studied at centers around the UK, some of which also offer distance learning options.
38
The institute also have overseas branches, namely the Chartered Institute of Logistics & Transport Australia (CILTA) in Australia,
39
and the Chartered Institute of Logistics and Transport in Hong Kong (CILTHK) in Hong Kong.
40
In the UK, logistics management programs are conducted by many universities and professional bodies such as CILT. These programs are generally offered at the postgraduate level.
The Global Institute of Logistics,
41
established in New York in 2003, is a
think tank
for the profession and is primarily concerned with intercontinental maritime logistics. It is particularly concerned with
container
logistics and the role of the
seaport authority
in the maritime logistics chain.
The International Association of Public Health Logisticians (IAPHL)
42
is a professional network that promotes the professional development of supply chain managers and others working in the field of public health logistics and commodity security, with particular focus on developing countries. The association supports logisticians worldwide by providing a community of practice, where members can network, exchange ideas, and improve their professional skills.
Museums
edit
There are many museums in the world which cover various aspects of practical logistics. These include museums of transportation, customs, packing, and industry-based logistics. In particular, the following museums are fully dedicated to logistics:
General logistics
Logistics Museum (
Saint Petersburg
, Russia)
43
Museum of Logistics (Tokyo, Japan)
44
Beijing Wuzi University
Logistics Museum (Beijing, China)
Military logistics
Royal Logistic Corps Museum
Hampshire
, England, United Kingdom)
The Canadian Forces Logistics Museum (
Montreal
, Quebec, Canada)
45
Logistics Museum (
Hanoi
, Vietnam)
See also
edit
Automated identification and data capture
– Methods of automatically identifying objects by computer system
Pages displaying short descriptions of redirect targets
Document automation
– Design of systems for electronic documents
Cyclologistics
– Freight transport by bicycles
Field inventory management
– Function of understanding stock mix of a company and the different demands on that stock
Pages displaying short descriptions of redirect targets
Freight claim
– Legal demand against a shipment carrier
Freight forwarder
– Handles logistics for freight
Incoterms
– Standardized contract terms regarding transportation and delivery
Containerization
– Intermodal freight transport system
Integrated Service Provider
– Type of logistics services firm
Inventory management software
– Software used to track inventory levels and stock movement
Performance-based logistics
– Defense acquisition strategy for cost-effective weapon system support
Physical inventory
– Physical verification of stored items
Pages displaying short descriptions of redirect targets
Sales territory
– Geographic area or customer group managed by a sales representative
Storage management system
– Data storage technique
Pages displaying short descriptions of redirect targets
Blockchain
– Distributed data store for digital transactions
Dutch flower bucket
– Flower transport container
Self-driving truck
– Type of autonomous vehicle
Automated storage and retrieval system
– Robotic warehouse for physical objects
Automated guided vehicle
– Type of portable robot
Supply chain sustainability
– Possible positive impact of a company
References
edit
Jon Hurdle (13 May 2021).
"Report details surge in warehouse construction…"
NJ Spotlight News
. Retrieved
3 January
2023
In South Jersey, the area has become the "epicenter" of warehouse construction in the greater Philadelphia region..'Activity in the Southern New Jersey industrial market continues to amaze,' the report said.
Ghiani, Gianpaolo; Laporte, Gilbert; Musmanno, Roberto (2004).
Introduction to Logistics Systems Planning and Control
. John Wiley & Sons. p. 1, 5, 10–15.
ISBN
9780470849170
. Retrieved
8 January
2023
Kozlenkova, Irina V.; Hult, G. Tomas M.; Lund, Donald J.; Mena, Jeannette A.; Kekec, Pinar (December 2015).
"The Role of Marketing Channels in Supply Chain Management"
Journal of Retailing
91
(4):
586–
609.
doi
10.1016/j.jretai.2015.03.003
Logistics refers to 'that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements'
Baron de Jomini
(1830).
Tableau Analytique des principales combinaisons De La Guerre, Et De Leurs Rapports Avec La Politique Des États: Pour Servir D'Introduction Au Traité Des Grandes Opérations Militaires
. p.
74
Chambray
[in French]
(1832).
"Observation sur Le Tableau Analytique des principales combinaisons De La Guerre, Et De Leurs Rapports Avec La Politique Des États: Pour Servir D'Introduction Au Traité Des Grandes Opérations Militaires par le général Jomini"
Le Spectateur militaire: Recueil de science, d'art et d'histoire militaires
(in French).
13
: 19.
Tepic, J.; Tanackov, I.; Stojić, Gordan (2011).
"Ancient logistics – historical timeline and etymology"
(PDF)
Technical Gazette
18
(3).
S2CID
42097070
. Archived from
the original
(PDF)
on 9 March 2019.
Oxford Dictionaries
. Retrieved 21 February 2012.
Material Handling & Logistics News
"CSCMP glossary"
(PDF)
. Archived from
the original
(PDF)
on 22 May 2016
. Retrieved
10 September
2013
V. Misra, M.I. Kahn, U.K. Singh, Supply Chain Management Systems: Architecture, Design and Vision, North American Business Press 2010
See the articles on the
USS O'Brien (DD-725)
and
USS Victoria (AO-46)
during World War II
Hofmann, Sebastian.
"Distribution logistics - definition, basics, examples"
. Retrieved
3 March
2022
Agrawal, Saurabh; Singh, Rajesh K.; Murtaza, Qasim (1 April 2015).
"A literature review and perspectives in reverse logistics"
Resources, Conservation and Recycling
97
76–
92.
Bibcode
2015RCR....97...76A
doi
10.1016/j.resconrec.2015.02.009
ISSN
0921-3449
Cozzolino Alessandra, Humanitarian Logistics and Supply Chain Management, In
Humanitarian Logistics
, Springer Berlin Heidelberg 2012
"Pooling Logistics Resources"
Fleet Forum
. 19 January 2020
. Retrieved
23 September
2025
L. Torre, I.S. Dolinskaya, K.R. Smilowitz, Disaster relief routing: Integrating research and practice Socio-Economic Planning Sciences vol46, March 2012
Nyhuis P., Wiendahi Hans-Peter, Fundamentals of Production Logistics, Springer Berlin Heidelberg 2009
What is Logistics Management? Meaning, Importance, Basic Functions & Strategies
on
J.P. Roth, The logistics of Roman army at war (264 B.C. -A.D. 235)
Donald W. Engels, Alexander the Great and the Logistics of the Macedonian Army, University of California 1980
Ayrault Dodge Theodore
, Hannibal: A History of the Art of War Among the Carthaginians and Romans Down to the Battle of Pydna, 168 BC. Da Capo Press. 1995
Troy T. Kirby, The Duke of Wellington and the Supply System During the Peninsula War, CreateSpace Independent Publishing Platform 2014
Roger Morriss, "Colonization, Conquest, and the Supply of Food and Transport: The Reorganization of Logistics Management, 1780–1795,"
War in History,
(July 2007), 14#3 pp 310–324,
Cloutier, Peter J.; Frank, Brian K. (July–August 2009).
"The Joint Logistics Analysis Tool"
Army Logistician
41
(4). Archived from
the original
on 9 May 2015.
Mallik, Susan (2010). "Customer Service in Supply Chain Management". In Hossein Bidgoil (ed.).
The Handbook of Technology Management: Supply Chain Management, Marketing and Advertising, and Global Management, vol 2
(1 ed.). Hoboken, New Jersey:
John Wiley & Sons
. p. 104.
ISBN
978-0-470-24948-2
McGinnis M. A., Military Logistics: Insights for Business Logistics, International Journal of Physical Distribution & Logistics Management Vol 22, 1992
Ben Ahmed, S.; Al-Marridi, H. A.; Al-Merri, Z.; El-Saadany, M. (2021).
"Optimization of Vehicle Transportation Route Based on IoT"
Journal of Advanced Transportation
2021
1–
14.
doi
10.1155/2021/1312058
Ruggeri, R.; Perego, A. (2001).
Esercitazioni e temi d'esame di Logistica Industriale
(in Italian). CUSL.
ISBN
8881320150
ISO 6780:2003 – Flat pallets for intercontinental materials handling – Principal dimensions and tolerances
Lambert D., Stock J., Ellram L., Fundamentals of Logistics, McGraw-Hill 1998
D.F. Bozutti, M.A. Bueno-Da-Costa, R. Ruggeri, Logística: Visão Global e Picking, EdUFSCar 2010
Waters D.,
Logistics: An Introduction to Supply Chain Management
, Palgrave Macmillan 2003
John T. Phelan, Jr. P.E.
Supply & Demand Chain Executive
. Enom, Inc.
Wallenburg, Carl Marcus; Cahill, David L.; Michael Knemeyer, A.; Goldsby, Thomas J. (2011). "Commitment and Trust as Drivers of Loyalty in Logistics Outsourcing Relationships: Cultural Differences Between the United States and Germany".
Journal of Business Logistics
32
83–
98.
doi
10.1111/j.2158-1592.2011.01008.x
Baziotopoulos (2008).
An Investigation of Logistics Outsourcing Practices in the Greek Manufacturing Sector
(PhD thesis).
Zacharia, Zach G.; Sanders, Nada R.; Nix, Nancy W. (1 April 2011).
"The Emerging Role of the Third-Party Logistics Provider (3PL) as an Orchestrator"
Journal of Business Logistics
32
(1):
40–
54.
doi
10.1111/j.2158-1592.2011.01004.x
Raue, Jan Simon; Wieland, Andreas (2015).
"The interplay of different types of governance in horizontal cooperations"
The International Journal of Logistics Management
26
(2):
401–
423.
doi
10.1108/IJLM-08-2012-0083
hdl
10398/4de0953a-3920-409a-b63a-60342c976528
S2CID
166497725
"Chartered Institute of Logistics and Transport (CILT) – Professional Logistics Programs"
EduMaritime
. Archived from
the original
on 3 August 2020
. Retrieved
20 June
2019
"Chartered Institute of Logistics & Transport Australia (CILTA) – Certification & Training"
EduMaritime
"Chartered Institute of Logistics and Transport in Hong Kong (CILTHK) – PQE Programs"
EduMaritime
"GIL HOME"
Global Institute of Logistics
. Retrieved
20 June
2019
"International Association of Public Health Logisiticians"
IAPHL
. Retrieved
20 June
2019
"Logistics Museum"
logistics-museum.ru
. Archived from
the original
on 20 June 2019
. Retrieved
20 June
2019
"Museum of Logistics | 物流博物館"
www.lmuse.or.jp
. Retrieved
20 June
2019
"Canadian Forces Logistics Museum"
Montreal Museums
. Archived from
the original
on 20 June 2019
. Retrieved
20 June
2019
Further reading
edit
Engels, Donald W. (1980).
Alexander the Great and the Logistics of the Macedonian Army
. University of California Press. p. 194.
ISBN
9780520034334
Hess, Earl J. (2017).
Civil War Logistics: A Study of Military Transportation
. Louisiana State University Press.
ISBN
9780807167502
Huston, James A. (2004).
The Sinews of War: Army Logistics, 1775–1953
. Honolulu, Hawaii: University Press of the Pacific.
ISBN
9781410213686
Handfield, R. B.; et al. (2013).
Trends and Strategies in Logistics and Supply Chain Management: Embracing Global Logistics Complexity to Drive Market Advantage
. BVL International.
ISBN
9783871544811
Ballou, Ronald H.; Srivastava, Samir K. (2018).
Business Logistics/Supply Chain Management: Planning, Organizing and Controlling the Supply Chain
(Fifth edition, fourteenth impression, Indian subcontinent adaptation ed.). Uttar Pradesh, India: Pearson India Education Services.
ISBN
9788131705841
Bowersox, Donald J.; Closs, David J.; Cooper, M. Bixby; Bowersox, John C. (2019).
Supply Chain Logistics Management
(Fifth edition, international student ed.). New York: McGraw-Hill Education.
ISBN
9781260547825
Christopher, Martin (2011).
Logistics & Supply Chain Management: Creating Value-Adding Networks
. Prentice Hall.
ISBN
9780273731122
Jones, James V. (2010).
Integrated Logistics Support Handbook
(3rd ed.). New York: McGraw-Hill.
ISBN
9780071471688
Blanchard, Benjamin S.
(2004).
Logistics Engineering and Management
. Pearson Prentice Hall.
ISBN
9780071471688
Poluha, R. G. (2016).
The Quintessence of Supply Chain Management: What You Really Need to Know to Manage Your Processes in Procurement, Manufacturing, Warehousing, and Logistics
. Quintessence Series (First ed.). Heidelberg; New York; Dordrecht; London: Springer.
ISBN
978-3-662-48513-2
Preclík, Vratislav (2006).
Průmyslová logistika (Industrial Logistics)
(First issue ed.). Prague: Nakladatelství ČVUT v Praze. p. 359.
ISBN
80-01-03449-6
Wikimedia Commons has media related to
Logistics
Management
Outline of management
Index of management articles
By type
of organization
Academic
Association
Business
Restaurant
Court
Healthcare
Intelligence
Military
Public
Reputation
By focus,
within an
organization
On scope
Strategic
(top-level)
Capability
Capital
Change
Communication
Financial
Innovation
Legal
Performance
Risk
Systems
On component
Facility
Product
Product lifecycle
Brand
Project
Construction
Program
On activity or
department
managed
Line
Marketing
Operations
production
Process
Quality
Sales
Staff
Accounting
Office
Records
On aspect or
relationship
Customer relationship
Engineering
Logistics
Perception
Supply chain
Talent
On problem
Conflict
Crisis
Stress
On resource
Environmental resource
Field inventory
Human resources
Information
Information technology
Knowledge
Land
Materials
Skills
Technology
Time
Positions
Interim
Middle
Senior
Methods,
approaches
Adhocracy
Collaborative method
Distributed
Earned value management
Evidence-based management
Full range leadership model
Management by objectives
Management style
Macromanagement
Micromanagement
Scientific management
Social entrepreneurship
Sustainable management
Team building
Virtual management
Skills,
activities
Decision-making
Forecasting
Leadership
Pioneers,
scholars
Peter Drucker
Eliyahu M. Goldratt
Oliver E. Williamson
Education
Business school
Certified Business Manager
Chartered Management Institute
Critical management studies
Degrees
Bachelor of Business Administration
Bachelor of Management
Master of Business Administration
Master of Management
Doctor of Business Administration
PhD in management
Other
Administration
Collaboration
Corporate governance
Executive compensation
Management consulting
Management control
Management cybernetics
Management development
Management fad
Management system
Managerial economics
Managerial psychology
Managerialism
Organization development
Organizational behavior management
Pointy-haired Boss
Systems science portal
Authority control databases
International
GND
National
United States
Czech Republic
Israel
Other
NARA
Yale LUX
Retrieved from "
Categories
Logistics
Business terms
Systems engineering
Hidden categories:
CS1 interwiki-linked names
CS1 French-language sources (fr)
CS1 Italian-language sources (it)
Articles with short description
Short description matches Wikidata
Use dmy dates from September 2019
Articles containing French-language text
Articles containing Ancient Greek (to 1453)-language text
Articles that may contain original research from January 2019
All articles that may contain original research
All articles with unsourced statements
Articles with unsourced statements from November 2025
Articles to be expanded from November 2022
All articles to be expanded
Articles needing additional references from April 2026
All articles needing additional references
Articles with specifically marked weasel-worded phrases from September 2025
Articles with unsourced statements from September 2020
Articles needing additional references from October 2025
All articles with specifically marked weasel-worded phrases
Articles with specifically marked weasel-worded phrases from October 2025
All articles with vague or ambiguous time
Vague or ambiguous time from January 2023
Articles with unsourced statements from July 2025
Pages displaying short descriptions of redirect targets via Module:Annotated link
Commons category link from Wikidata
Logistics
Add topic
US