What does logistics mean?

Logistics (English name: logistics) originally means "physical distribution" or "goods distribution", which is a part of supply chain activities and a process of planning, implementing and controlling the efficient and low-cost flow and storage of goods, services and related information from the place of origin to the place of consumption in order to meet the needs of customers. Logistics takes warehousing as the center to promote the synchronization of production and market.

Logistics is the whole process of planning, implementing and managing raw materials, semi-finished products, finished products and related information from the place of origin to the place of consumption by means of transportation, storage and distribution at the lowest cost.

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The specific contents of logistics activities include the following aspects: user service, demand forecasting, order processing, distribution, inventory control, transportation, warehouse management, layout and location of factories and warehouses, handling, procurement, packaging and intelligence information.

The concept of logistics was first formed in the United States and originated in the 1930s. Its original meaning was "physical distribution" or "goods distribution". 1963 was introduced to Japan, which means "the circulation of things" in Japanese. After 1970s, the word "logistics" in Japan gradually replaced "circulation of things".