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What is global logistics?

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Quick Answer

Global logistics refers to the flow of resources and information between a business or source and the consumer. It is a management process that analyzes how resources are acquired, stored and transported. To be effective, the process requires detailed analysis of a company’s entire supply chain.

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Full Answer

Global logistics refers to the management of the flow of goods or services between the point of creation and the point of consumption. The process includes a number of crucial business procedures and practices that relate to storing and transporting goods or services and is concerned with the acquisition of resources along the supply chain. Implementing an effective global logistics initiative reduces production costs and increases efficiency.

Effective management of the international supply chain process requires a strategy to effectively store and transport goods, services and related resources to the consumer. Global logistics analyzes and implements efficiencies to streamline this flow of resources from the point of origin to the point of consumption. It is a fundamental business process that includes the management of upstream and downstream relationships between suppliers and consumers.

As an example, global logistics in the oil and natural gas industry refers to the systems and management processes needed to efficiently gather, store and transport petrochemicals. The process analyzes the costs and benefits of various pipelines, transportation methods and distribution and storage facilities to create a near-optimum solution for the current circumstances.

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