Logistics is the process of planning and executing the efficient transportation and storage of goods from the point of origin to the point of consumption. The goal of logistics is to meet customer requirements in a timely, cost-effective manner.
Originally, logistics played a vital role in moving military personnel, equipment, and goods. While logistics is as important as ever in the military, the term today is more commonly used in the context of moving commercial goods within the supply chain.
Many companies specialize in logistics, providing the service to manufacturers, retailers, and other industries with a large need to transport goods. Some own the full gamut of infrastructure, from jet planes to trucks, warehouses and software, while others specialize in one or two parts. FedEx, UPS, and DHL are well-known logistics providers.
Typically, large retailers or manufacturers own major parts of their logistics network.