Logistics seems like a simple, almost intuitive word, but in reality, it hides a surprising complexity. It is often used as a synonym for transportation, sometimes merely for warehouse management, and other times as a catch-all term for anything related to the movement of goods. The result? The same word ends up meaning different things, creating confusion even among professionals, making it appear simpler than it actually is.
To set things straight, it is useful to start with theoretical definitions. One of the most recognized comes from the Council of Supply Chain Management Professionals, which defines logistics as: “The process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods, including services and related information, from the point of origin to the point of consumption for the purpose of conforming to customer requirements” (CSCMP Glossary, 2013). In this broad sense, logistics covers the entire physical and informational flow of goods: sourcing of raw materials and semi-finished products, internal and external movements, warehousing, distribution, and transportation. Transportation is therefore a component of logistics, but not logistics as a whole.
Alongside this broad definition, there is a narrower, operational meaning, typical of the 3PL (Third Party Logistics providers) world and the practice at Gruber Logistics. In this context, logistics primarily refers to contract logistics, taking responsibility for operational logistics activities on behalf of the client, with a strong focus on warehouse management: storage, handling, order preparation, inventory management, and related information flows. In this narrower sense, transportation is not necessarily included: the warehouse may serve flows handled by different carriers, and the client may use transportation providers that are not necessarily Gruber Logistics.
In summary, logistics can be understood in two main ways: on one hand, in a broad sense, as a coordinated set of activities including transportation from origin to consumption; on the other, in a narrow sense, as a third-party logistics service, focused mainly on warehouse and operational flow management for the client. Understanding this distinction is key to correctly interpreting roles, responsibilities, and competencies in the logistics and transportation sector.
From now on, when you hear the word logistics, remember that things are more complex than they appear at first glance. The purpose of this distinction is clear: to put order, clarify concepts, and provide a solid framework to understand roles, responsibilities, and developments in the world of logistics and freight transport.
