Learn in the textbookCompetitive Economics and Market Concepts
DefinitionLogistics (ロジスティクス) is the idea of planning and managing the entire flow of goods, from procuring raw materials to delivery to the customer, so that it is optimized as a whole.
ExplanationMaking a single task such as transport or warehousing more efficient does not lower overall cost if stock piles up or runs out. Logistics links every stage and manages them together, aiming to deliver the right goods in the right quantity to the right place at the right time.
AnalogyIt is like arranging boxed lunches for a large event by setting the order count, cooking, storage and delivery times to the venue all together so that nothing is left over or short.
Memory hookIt was originally a military term for the supply system that sends troops at the front exactly the materials they need.