According to the book “Contemporary Logistics,” the military first used the term “logistics” to describe the process of supplying a war zone with troops and equipment. Today, businesses use logistics to manage the flow of products from production to delivery. Additionally, certain companies that deal with the supply of goods have dedicated logistics department. A logistics team typically works to make sure that the business obtains the raw materials needed to produce goods at a reasonable price, organizes the storage of products prior to sale and ensures that the finished products ship as contracted.
Logistics comprises getting thousands of shipments across countries and continents to single, multiple and now thousands of end point destinations. However, the timescales for these delivery services have not necessarily scaled with the distance being travelled. In fact, customers are increasingly demanding more from their T&L providers. The growing demand for same-day deliveries is putting pressure on T&L operations to not only meet these tight timelines, but to continue to offer a consistent level of customer service (while at the same time improving operational efficiency and reducing costs).
Logistics integration refers to specific logistics practices and operational activities that coordinate the flow of materials from suppliers to customers throughout the value stream. Logistics provides industrial firms with time and space utilities, by providing the necessary quantity of goods is in the right place at the right time.