What is Logistics Management?

Glossary What is Logistics Management?

Logistics Management is one part of supply chain management and responsible for planning and implementing efficient systems to get goods from the point of origin (e.g. factory) to the point of consumption (e.g. store, customer's home).

Logistics Management is generally focused on the movement of product, rather than the vehicles used to transport the product (which is sometimes referred to as Transportation Management). In many cases it involves intermodal (different types of transport e.g. road, rail etc.) distribution channels.

Some firms will use an outside consultant to manage their product logistics as they often have expert knowledge and connections in the transport industry to improve overall efficiency and cost savings. Transported product may be tagged with barcodes, RFID tags or GPS for location tracking to monitor the progress of goods and improve the integrity of the supply chain.