What role does logistics play in supply chain management?

Logistics plays a crucial role in supply chain management by handling the efficient flow and storage of goods from the point of origin to the final consumer. This encompasses a range of activities, including transportation, warehousing, inventory management, order fulfillment, and distribution. By ensuring that products are delivered on time, in the right quantity, and at the right location, logistics directly impacts customer satisfaction and overall supply chain performance.

Effective logistics management helps companies minimize costs, improve service levels, and enhance the responsiveness of the supply chain. It involves coordinating various functions, such as transportation modes and routes, storage facilities, and managing inventory levels to align supply with demand. This integration of logistics within the supply chain framework enables businesses to operate more efficiently and effectively, ultimately supporting their strategic objectives and market competitiveness.