Logistics management is the part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption to meet customer requirement. When done right, supply chain and logistics management ca be a harmonious symphony of vendors, truck and warehouses. All parts work together to ensure the product is delivered undamaged, on time and to the customer. On the other hand, an incoherent, poorly planned and ineffective supply chain can potentially deal a fatal blow to the average small and medium-size company. Products lost in transit, sent to the wrong location and unexplained charges on customer receipts can all cause angst that's strong enough to push customers to the competitor.

The principal purpose of logistics is to get merchandise from one location to another. However, beyond this basic goal, you must determine what your overarching business strategy and defined your logistics goals accordingly. Do you intend to offer the best delivery times in the market? Would you want to be the one that charges the least?

What ever your target, there'll be a price to pay. The key is striking the right balance. For example, if you want faster delivery times, you'll likely need to spend above average on transportation. If you want to be the low cost provider, you'll have to identify non-core expenses to cut back on, even if this come at the price of longer lead times.