What Is Logistics, And Why Is It So Important To Business?

Logistics can be classified as an enterprise planning framework for material management, information, service and capital flows. Logistics, when seen in the context of the modern day work environment, may include information that is complex in nature while giving importance to all the communication and control system that are essential in today’s businesses.

To simplify, logistics has been defined as having the right type of product or service at the right place, at the right time, for a right price and in the right condition.


Logistics has evolved as a common and well-known business concept because of the ever increasing complexities of modern day business. The primary goal is to effectively manage the project life cycles and resultant efficiency. This has greatly evolved with a logistics manager’s role in promoting an efficient system of supply chain management.

In business terms, it can be summarized as a competitive strategy adapted by the enterprise to meet and exceed the expectations of its existing and prospective customers. It refers to a complete process of total supply chain management that is established to achieve a state of perfection through efficiency and integration. Logistics does not mean a single work activity but refers to a group of activities performed to attain the goal of a business enterprise that is maximizing their profits. This may involve steps like purchasing, planning, coordination, transportation, warehousing, distribution and customer service. A business can run without profits, but it needs money to fund its services, pay its employees and grow its customer base. Logistics plays an important part in the present business world; it cannot be neglected by an enterprise focused on growth and profitability.

Logistics is a mixture of a number of professional disciplines, such as: planning, controlling, directing, coordination, forecasting, warehousing and transportation, facility location, and inventory management

As per the Council of Supply Chain Management Professionals, logistics has been defined as the part of the process of supply chain that plans, control sand implements an effective and efficient flow for the purpose of storage of goods and services and other related information from the point of commencement to the point of final consumption with an aim to satisfy the requirements of its existing and prospective customers.

All activities that are involved in the movement of goods and services from the point of origin to the point of final consumption are grouped under the term ‘logistics’. The field of managing or supervising all these activities when grouped together as a collective unit, is placed under ‘logistics management’. People who are given the task of managing the logistics department may also be referred to as ‘distribution managers’.