Departments

What Is “Logistics”?

The Council of Logistics Management defines logistics as that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers’ requirements. The logistics program prepares you for employment in a large number of different positions and types of firms across the entire supply chain.

All of the activities involved in moving goods to the right place at the right time (as opposed to manufacturing them) can be described under the broad terms, “logistics” or “distribution.” The act of supervising or managing this far-reaching activity is generally known as “logistics management” or “distribution management.” Those persons who work in this industry are generally referred to as “logistics managers” or “distribution managers.”

The components of a typical logistics system are: customer service, demand forecasting, distribution communications, inventory control, material handling, order processing, parts and service support, plant and warehouse site selection (location analysis), purchasing, packaging, returned goods handling, salvage and scrap disposal, traffic and transportation, and warehousing and storage. A position in a small company may involve all of these, while working for a large corporation may entail being involved with only one or a few of these areas. In some organizations, a logistics manager may have responsibilities that go beyond this list.