In business, logistics is the coordination of the activities within the supply chain that move products from suppliers to consumers. Savvy logistics management is important because it enables businesses to keep costs low while meeting customer demand as quickly and efficiently as possible.
Logistics networks have three core elements: transportation, warehousing, and inventory. The transportation of materials and resources to the production plant is called inbound logistics, while outbound logistics oversee the transportation and distribution of products to customers. Warehouse management is the storage of finished goods before their distribution to final consumers, and the related field of inventory management seeks to keep supplies at the levels needed to satisfy forecast consumer demand.
As the recent COVID-19 pandemic has shown, maintaining reliable logistics networks becomes more important but also more challenging during unexpected events. As a result, the importance and value of supply chain risk management strategies like redundancy and diversification is more recognized than ever as a means to reduce vulnerability and enhance resilience.‎