Logistics

How can logistics be defined?

In logistics, everything revolves around the use and control of flows of goods and information. In this context, the main task of logistics is to plan, coordinate and control the value chain in order to make the execution of the necessary processes as efficient as possible.

Each stage of the value chain entails new logistics activities. Therefore, logistics can also be divided into different components. For a better overview, the terms are based on the respective process steps. These include: procurement logistics, production logistics, distribution logistics and disposal logistics. The first three areas form a logistics chain from the procurement of raw materials to the shipment of the goods. However, disposal logistics is a continuous process along the entire chain, which is important for the waste generated in the other logistics areas.

Objectives of logistics

The goals of logistics are diverse. Among other things, it must be ensured that materials, goods, people and information are properly procured, transported, stored, provided and distributed. In addition, all processes are to be constantly optimized, managed and controlled, and costs are to be reduced as far as possible. As a summary of the goals of logistics, the Seven Rights definition has become accepted, according to which logistics ensures that

• the right good
• in the right quantity
• in the right state
• in the right place
• at the right time
• for the right customer
• at the right cost

is available.

Subsections of logistics

Procurement logistics

Production logistics

Distribution logistics

Disposal logistics

Differentiation from fulfillment

In summary, logistics is the planning, organization, control and handling of material and good flows as well as the associated information flows. The goal is always high performance, quality and cost reduction.

Fulfillment, on the other hand, deals with all activities that occur after the contract has been concluded in order to ensure delivery to the customer and to fulfill all other contractual obligations. The following terms must be distinguished in order fulfillment, service fulfillment and omnichannel fulfillment. here.Back to glossary overview