What does logistics refer to in a business context?

Logistics in a business context specifically refers to managing the flow of goods and services from the point of origin to the point of consumption. This encompasses a variety of processes including transportation, warehousing, inventory management, and order fulfillment. Efficient logistics ensures that products are delivered to customers in a timely and cost-effective manner, which is crucial for maintaining customer satisfaction and optimizing supply chain performance.

While marketing strategies, setting goals, and establishing pricing models are all important aspects of running a business, they do not encapsulate the core functions and activities that logistics entails. Logistics is fundamentally about the operational side of a business—how products are moved, stored, and delivered to ensure that supply meets demand effectively.