5 mins read
Goods do not move on their own from a supplier to a customer.
Someone has to store them, transport them, track them, and fix problems along the way.
That work is logistics. So, what is logistics?
It is the planning and coordination of how goods, and the information about them, move from where they start to where they are needed.
This guide explains what logistics means, why it matters, what logistics management involves, and which parts a working logistics system needs. It is written for business owners, online sellers, and anyone new to the subject.
What Does Logistics Mean?
Logistics is the process of planning, moving, storing, and tracking goods from the point of origin to the point of consumption.
The Council of Supply Chain Management Professionals (CSCMP) describes it as the part of supply chain management that plans, implements, and controls the flow and storage of goods, services, and related information, in order to meet customers' requirements.
Is Logistics the Same as Supply Chain Management?
No. Logistics management is a subset of the wider supply chain management process.
Supply chain management also covers sourcing, procurement, and manufacturing. Logistics focuses on movement and storage.
Why Is Logistics Important?
1. Customers judge a business by how the order arrives, and if it arrived on time and in good condition.
2. Poor routing, failed deliveries, and badly managed stock all cost money. Good logistics reduces that waste.
3. Goods that are stored and moved properly are available when customers want them.
4. A process that works for 10 orders often breaks at 100. Great logistics lets you handle more orders without more confusion.
What Is Logistics Management?
Logistics management is the planning, running, and control of logistics activities so that goods reach customers efficiently.
Logistics is the work of moving and storing goods.
Logistics management is the decision-making behind that work.
Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfilment, logistics network design, inventory management, supply and demand planning, and management of third-party logistics providers.
For a small business, logistics management can be as simple as deciding how orders are packed, who delivers them, and how customers get updates.
For a larger business, it involves teams, systems, and data.
What Are Examples of Logistics?
1. Inbound Logistics
Inbound logistics covers goods coming into your business. Examples include raw materials arriving at a factory, or stock from a supplier arriving at your store or warehouse.
2. Outbound Logistics
Outbound logistics covers goods leaving your business for customers. Packing an online order and sending it to the buyer is outbound logistics.
3. Reverse Logistics
Reverse logistics moves goods back from the customer. It covers returns, recycling, repairs, and the disposal of damaged or obsolete goods. An online store handling a returned item is a common example.
To learn more about Reverse Logistics, click here.
4. Last-Mile Delivery
Last-mile delivery is the final step, from a local hub or pickup point to the customer's door. It is often the hardest part to get right because it depends on addresses, traffic, and customer availability.
You should see: What is Last-Mile Delivery?
5. Third-Party Logistics
Third-party logistics (3PL) means handing some or all logistics work to a specialist provider. This can include transport, storage, or delivery. Many small businesses use it so they do not have to run their own riders or vehicles.
Also Read: What Is 3PL (Third-Party Logistics)?
6. International Logistics
International logistics covers import and export shipments, such as goods moving from China to Nigeria or from Nigeria to the US. It adds customs, documentation, and longer transit routes.
Read: Logistics Models: Difference Between 1PL, 2PL, 3PL, 4PL, and 5PL
What Are the Components of a Logistics System?
1. Transportation: The vehicles, riders, or carriers that move goods, and the routes they use.
2. Warehousing and storage: Where goods are kept before they are sent. See our guide on warehouse distribution.
3. Inventory management: Knowing what stock you have and where it is, so you do not oversell or run out.
4. Order processing: Receiving, confirming, packing, and dispatching orders correctly.
5. Packaging: Protecting goods in transit and keeping them fit for delivery.
6. Information and tracking: Giving you and your customer a shared view of where an order is.
7. Customer communication: Updates on dispatch, delays, and delivery, so customers do not have to ask.
To check your own setup, start with the step that causes the most delays or complaints. Fix that before adding anything new.
How Can You Manage Your Logistics With Kwikpik?
We support businesses that need to move orders and packages to their customers.
Depending on the approved service and location, this includes last-mile delivery, on-demand delivery, scheduled delivery, and order tracking. Businesses have two ways to work with us.
1. You send orders through an agreed channel and our team coordinates delivery. You do not need a website or a technical integration.
2. Our logistics API connects to your website or system, so delivery requests and status updates flow between the two.
Frequently Asked Questions
Is Logistics Just Another Word for Delivery?
No. Delivery is one part of logistics. Logistics also includes storage, inventory, order processing, packaging, and returns.
Do Small Businesses Need Logistics Management?
Yes, though it can be simple. Even a small online seller needs a clear process for packing, dispatch, delivery, and returns. Write down each step and note where orders get stuck.
What Does a Logistics Manager Do?
A logistics manager plans and oversees how goods move and are stored. This includes choosing carriers, managing stock levels, coordinating deliveries, and solving delays. If you want to study the field, see our list of logistics courses.
Can I Use a Logistics Partner Without a Website?
Yes. Kwikpik can support businesses through a managed delivery process, where orders are shared through an agreed channel and the team coordinates fulfilment. An API integration is optional.
What Is the Difference Between Logistics and Supply Chain Management?
Logistics covers the movement and storage of goods. Supply chain management is wider and includes sourcing, procurement, and manufacturing, as well as logistics.
