Transporting and storing goods has been part of human activity since time immemorial. The ancient Egyptians left logistics an enduring monument in the construction of the pyramids.

However, the roots of logistics as an independent term begin in 19th-century France: the planned supply and accommodation of military troops has since been closely associated with the French words “logistique”, “logis” and “loger”.

Since industrialization at the latest, the mobility and availability of goods has been indispensable. In the 1960s, U.S. economist Edward Grosvenor Plowman¹ defined the term logistics in a holistic way for the first time. According to him, “logistics” quite pragmatically ensures …

1. the right goods,
2. in the right quantity,
3. in the right condition,
4. at the right place,
5. at the right time, and
6. at the right cost.

Fifty years later, this six-rights rule is still widely used, although it has since been extended to an “eight rights” definition, including the availability of the right goods …

   7. for the right customer and
   8. with the right information.

Logistics researchers and the BVL² have meanwhile developed their own definition:

“Logistics is the holistic planning, control, coordination, execution and monitoring of all internal and intercompany flows of information and goods.”

While this academic definition covers all key activities of logistics, it lacks reference to systematics and to the actual object of logistical tasks. It overlooks the fact that, in practice, “simple” logistics applications also exist. There are numerous flows of goods and information that are neither planned nor systematic – for example on construction sites in craft businesses or in industrial plant engineering – and yet we still consider them logistics.

At LogistikPlan, we use an equally simple and application-oriented definition of logistics that emphasizes its systematic character. It is complemented by specific application objectives – the object of logistics – and by its context: the logistics system as part of an organization.

The LogistikPlan definition of logistics:

Logistics is the way in which a customer is supplied in a demand-oriented and systematic manner.

The object of logistics is

• the provision of materials and other resources,
• the shipment of semi-finished and finished products,
• the return flow of returns, waste and residual quantities, and
• the transmission of data relating to the respective goods and processes.

A logistics system governs the economic, organizational, technical and data-related interaction between suppliers and customers:

• within a company or organization,
• within supply chains between different companies or sites, and
• in the supply of markets and end customers.

Current objectives of our consulting clients mostly relate to improving operational or tactical functions within the company.

1. Expansion of warehouse and shipping capacity to handle increasing order volumes
2. More flexible logistics solutions for future changes (product range, production or volume changes)
3. Warehouse and material flow automation with proven economic viability, ROI within five years at the latest
4. Optimization of logistics business processes and introduction of standard processes, including returns and complaints handling
5. Company-wide uniform IT solution for all logistics functions
6. Improved transparency of inventory, order and performance data (actual and target) across all warehouse locations
7. Introduction of measurable KPIs to improve quality, performance and costs
8. Efficient, fast and reliable supply chains
9. Assessment of the strategic pros and cons of logistics outsourcing
10. Performance monitoring of internal and external logistics and derivation of optimization measures