1.3 Introduction
In logistics, if you go an hour without a screw-up, you’ve had a great day.
—Gus Pagonis
Have you ever thought about what your life would be like without modern logistics? Without today’s highly effective logistics systems, our daily lives would be very different. The products we have access to would be limited to what is made and grown very close to where we live. Global trade would be slow, expensive, and very limited. Research and development would be hindered because of smaller consumer markets. Some of the cool electronics we use every day might not exist. Others would be too expensive for the average consumer to buy. Many resources would be wasted due to spoilage and a mismatch of supply and demand. Our world would be very small—and very frustrating.
Fortunately, most of the world enjoys the benefits of excellent and constantly improving logistics. We see logistics activities occurring around us every day, though we probably don’t think about it. For example, safe and economical shipment allows us to enjoy seasonal fruits and vegetables when they are unavailable locally. Think: Chilean grapes sold in the northern hemisphere during the winter. Further, logistics makes it possible for us to order just about anything online and receive it quickly—and at affordable prices.
According to the Council for Supply Chain Management Professionals (CSCMP), the formal definition of Logistics Management is,
That part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements.1
The good news: logistics is much more exciting and dynamic than this definition lets on. A less formal definition of logistics is expressed by the Seven Rights of Logistics, which say that effective logistics management is about getting the right product to the right customer, at the right time, in the right condition, in the right quantity, at the right place, and for the right cost. Logistics is responsible for movement, storage, and the coordination of goods in the supply chain. Logistics is all about meeting customers’ needs affordably. We explore how logistics adds value to the economy, to organizations, and to your life. We consider the role of logistics in global trade and development and provide examples of how companies have embraced logistics and applied supply chain concepts to win out over rivals in the marketplace.2