What is the role of logistics in supply chain management?

The role of logistics in supply chain management is primarily centered around planning, implementing, and controlling the movement and storage of goods and information. This encompasses a wide range of activities that ensure products are transported efficiently from one point to another, including managing transportation, warehousing, inventory management, and order fulfillment.

Logistics is crucial because it directly affects service delivery and customer satisfaction. Proper logistics planning means ensuring that the right products are available in the right quantities and at the right times, which is vital for meeting customer demands and optimizing supply chain operations. Additionally, logistics also involves the management of information flow, ensuring that stakeholders have the necessary data to make informed decisions about inventory levels, delivery schedules, and resource allocation.

This understanding is fundamental in supply chain management, as effective logistics can lead to reduced costs, improved efficiency, and enhanced competitiveness in the market.