What Is Logistics?September 15, 2021
In Ecommerce, logistics broadly refers to the general process of managing how products are acquired, stored, and transported to their destination. The term, logistics, originates from its use in the military, where it refers to the process of providing supplies and equipment to troops. Now, it is a term largely used in business, especially by Ecommerce companies to refer to how products are moved.
Although it may seem like a term that is simple enough to understand, it is still frequently mixed up with supply chain management.
The Difference Between Logistics and Supply Chain Management
The biggest difference between logistics and supply chain management is that logistics is largely internal while supply chain management is external. Logistics is what occurs within one company, including:
- Purchase and delivery of products
- Transportation of goods to distributors
On the other hand, supply chain management deals with the large network of external entities that help to deliver orders to customers, including:
- Call centers
- Warehouse providers
- Transport providers
- And more
What Functions Does Logistics Cover?
Logistics management typically involves:
- Fleet management
- Inbound transportation
- Outbound transportation
- Order fulfillment
- Inventory management
- Demand planning
Who Is Responsible for Logistics?
The responsibilities of a logistician can vary depending on the business. Their main responsibilities include managing inventory by arranging appropriate transportation and ensuring that inventory levels are optimized.
Qualified logisticians plan out the company’s logistics process, coordinating as inventory and resources move along the supply chain.
Why Logistics Matters
Logistics is vital for any business. Even if your business has a great product, if it cannot reach your customer in time and intact, you cannot sustain your business. The better your logistics process is, the more profitable your business can be.
How Third-Party Logistics Providers (3PLs) Can Help With Logistics
Although logistics is a basic concept, moving products from one place to another, it can turn into a complicated process with many moving parts, especially as a business grows. 3PLs can help to ensure your logistics process works smoothly and efficiently by offering everything from inventory management to logistics for returned orders.
If you need help with your logistics process, consider using a 3PL like Fulfillment Works. We offer everything from warehouse management and EDI services to order fulfillment and customer service to ensure your customers experience quality deliveries.