ABSTRACT

This entry describes logistics concepts. Coverage includes warehousing, transportation, and distribution channels. Logistics activities include locating facilities, transporting material, storing inventory, communicating, and the handling processes associated with these supply chain processes. These activities have been integrated over the past 50 years and are essential supply chain management functions. As distribution channels and the variety of products in them have increased over the past decades, logistics has assumed increased importance in the supply chain.The entry addresses in detail the total cost of logistics. It points to the tradeoffs needed in designing a logistics network. It points to lack of visibility over costs and fragmented responsibilities as barriers to improving logistics.