Home Knowledge Base Introduction to Logistics What is Logistics (Logistics Definition) Here is the Complete Guide

What is Logistics (Logistics Definition) Here is the Complete Guide

Exactly what is logistics? Most of us get confused at the initial stage. The Logistics has a long history starting from the 1830s. The word started using in the military field while supplying the military equipment and supplies for the war. Later the term was added to the commercial world due to its prominence for efficient and effective flow of cargo.

Different authors and organisations have given several definitions and meanings to the word “Logistics”. Thus the bottom line of all the definitions and meanings lies on the proper management of activities of a value chain.

Logistics Definition

As explained, Logistics has defined by many gurus. The Charted Institute of Logistics and Transport(CILT) has given below logistics definition.

CILT defines it as the time-related positioning of the resource.  It is also described as the “seven rights (7-Rs)”.  Essentially, it is the process of ensuring that goods or services are: In the right place, At the right time, In the right quantity, At the right quality, and At the right price, to the right customer At the right cost.

Explaining the definition in detail, the seven rights involve, material handling including packing and labeling, transportation, warehousing, inventory management, demand projection, and procurement. Looks like a simple process, but there is a lot to dig in within one element. Logistics play a crucial role to keep the world running. In most of the time, Logistician does the hard work being in the backstage.

Most important thing you should know is it speak on individual activities.

i.e. Consider a situation where person A in country B, order a product from the supplier C in country D. To deliver the product from country D to country B there is a lot of work involved. First, this product should be produced. Supplier C has to purchase raw material to produce the product. The product should pack and store until it is delivering. Booking has to make from a shipping line or from an airline. After, the product should deliver to the airport or the seaport for transporting. Once the product is at the destination port, from the port it should deliver to the customer’s doorstep. So, there are a lot of logistics activities involves. Undiscussed documentation process also has a lot more to do.

Logistics vs supply chain management

Logistics vs supply chain management, dailylogistic.com
Supply Chain management-dailylogistic.com

The Michigan State University defines Supply chain management as an overarching concept that links together multiple processes to achieve competitive advantage, while logistics refers to the movement, storage, and flow of goods, services and information within the overall supply chain. So, it says even logistics is a part of the supply chain it has a bigger portion in it.

Wayne Johnson of American Gypsum (A  wall boards manufacturer) stated supply chain and Logistics has no different.

The concept of Logistics merged to the business world from the military with a long history unlike the supply chain.

Most of us get confused when trying to define logistics vs supply chain. Industry experts argue on the fact that logistics is a subset of the supply chain which network all the activities involved in a product/service flow. Some say both fields have common concepts. Some agree Supply chain combine all the logistics activities of a business process to get the competitive advantage over the competitors. But there is no one agreed definition on the difference between two of them.

Yet you could keep in mind the below to avoid confusion.

Logistic speak on individual activities as mentioned above. But, it has a say in every activity of sourcing raw material to production until the product reach its final destination up to the disposal/re use of products. So, it plays a big role in cost reduction, quality, and availability of the products at consumers door step. These activities are like links in a chain. Each activity should be completed/full filled for the next activity to take place. Hence, the process which combine all the logistics activities and combine the links identifies as a supply chain. As the name reflect supply chain is a combinations of supply links.

Reverse Logistics

Reverse Logistics-dailylogistic.com

Generally, products flow from a supplier to the customer. In reverse logistics, it considers as product flow from the customer’s end to the supplier’s end. So, the activities involved after sales come under reverse logistics. Once a product is sold there could be hundred reasons for a product to fly from customer to supplier. If the customer receives a product which customer has not ordered/ a product which doesn’t match the need or the want he/she may want to return the product. May be after the use product may need to dispose. Hence, Product recycling, returns, disposal, re-branding and any other value creation could come under the reverse logistics.

Green Logistics

Green Logistics-
dailylogistic.com-

In today’s context, companies are more focus to follow greenery concepts.Well educated and environmental conscious consumers are even willing to pay high prices for the products with minimum environmental impact. The process of adhering to environmentally friendly methods to reduce the impact of logistics activities come under green logistics. High utilization of the resources, improving productivity, using renewable energy for warehousing and office spaces are some options under the green concept. DHL is one of the leading logistics company working towards green practices.

Using low sulphur fuel, LNG powered engines, solar powered electricity, e- business processes are common concepts followed by companies to go green. Now a days despite the quality products, having environmental friendly activities are essential to satisfy the customers.

What is Inbound Logistics?

What is Inbound Logistics-dailylogistic.com

The process of bringing/transporting raw materials, work in progress to the factory for manufacturing and activities involved with same consider as Inbound Logistics.

What is Outbound Logistics ?

What is Outbound Logistics-
dailylogistic.com

Outbound speaks on the logistics activities arise after a production of a product. Storing the final products, Transporting them to the market are Outbound Logistics activities.

Careers

You have a vast range of job opportunities if you select Logistics as your career. Most of your time you will spend with engaging the career work. So, it is very important that you select a career which suits you. Also, a career which will not make you bored.  If you select Logistic, you have made the right choice. Believe me…I am a Logistician.

How to be a Logistician?

dailylogistic.com-how to be a logistician-

Pursuing a degree in Logistics/ Logistics and Transportation/ Logistics and supply chain is the best option to start your career as a Logistician. Having a 3-4 years full time academic knowledge will be very helpful to you as a beginner. Lot of companies provide internship after the higher education to support undergraduates and graduates.

Even you are engaging with a job and wish to become a logistician, you could follow a part time degree or a diploma to suit your carrier requirement.

Need advise? Feel free to reach to our experts through Contact Us. Our logisticians will be happy to assist you!

Is Logistics a Good Career

Obviously Yes..

It’s a challenging job. Most of the jobs are very stressful as you run with the deadlines and full of responsibilities.  Don’t get panic… Then you can do a good job. The satisfaction you get at the end of the day by doing your job right is more than anything. Yes, you can… C’mon…

Career Opportunities in the Field

Where Can I Work?

You have plenty of options. Below are some areas to develop your career

  • Sea Ports
  • Air Ports
  • Air Lines
  • Shipping Lines
  • NVOCC/ Freight Forwarding companies
  • Manufacturing firms
  • Fleet management companies
  • 3PL providing companies
  • Logistics consultancy firms

Few Industry Job Boards

All About Carrier: https://www.allaboutcareers.com/

Indeed: https://www.indeed.com/

Gulf Talent: https://www.gulftalent.com/

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