10 Interesting Facts About The Logistics And Supply Chain Industry (2023)


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Stan EdomSeptember 9, 201710 Interesting Facts About The Logistics And Supply Chain Industry2017-09-10T14:18:59+01:00

10 Interesting Facts About The Logistics And Supply Chain Industry (1)

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The journey of every product from where its raw materials are produced to ending up at your home is an interesting one. In fact, we are now so used to having everything within our reach because of the valuable impact of logistics and supply chain, which is largely always being taken for granted. But really, everything from your coffee to chocolate, clothes, and even your car are living examples of the success of transporting items from one side of the world to meet a consumer at the other side.

It is no secret that supply chain management has taken leaps when it comes to innovation, with an example being the fact that it is not uncommon today, to receive your goods within the same day of ordering it.

How then does it really work? And what have you not noticed all along?

That said, here are some interesting facts about the logistics and supply chain industry that you might find interesting:

See Also:8 Ways to Reduce Transportation Costs in Nigeria — And Grow Your Profits

1). It Is One Of The Largest Job Creators:

In these 6 sectors, there are easily hundreds of thousands of people who make their living in the logistics and supply chain industry.

As populations grow and economies boom, especially in Africa, more consumer demand drives the growth of the sector. Within the continent, there is still need to improve infrastructures to make the transportation of goods faster and safer; but one of the biggest challenges is manpower.

Currently, the logistics industry comprises only of 4% of the jobs in Africa. But as trade grows, it would continue to hire more manpower. There is already a huge shortage of skilled workers for this sector, and the number of unfilled jobs is expected to rise even more. In South Africa, for example, there is a huge shortage of logistics administrators and managers, but as well as couriers and truck drivers.

2). It Comprises Of 6 Sectors:

One of the largest industries in the world, logistics and supply chain, is composed of about six sectors. The first four refers to transportation of goods; specifically, road, maritime, air, and rail. The other two is storage and warehousing.

(Video) Top 10 Supply Chain Management Trends, Predictions, and Strategies for 2022

All these sectors are carefully coordinated to ensure timely and orderly pickup and delivery of goods from the producer to the end customer. This is especially important when it comes to fresh or perishable products.

See Also:10 Hot Supply Chain Business Opportunities In Nigeria

3). It Developed During The Second World War:

It is perfectly normal today to buy products from any part of the world and have it shipped to another. Back in the days, it was a matter of life and death.

During the Second World War, the Allies troops were sent to different war zones and it was necessary to coordinate supplies so all of their soldiers would have what they need to survive. It made such an impact on victory, as the Axis forces really struggled because of severe damage on their supply locations.

Although transporting supplies is nothing new, the war made it important to do so in the most optimal and economically sound way possible.

4). Everything Else Is Heavily Reliant On This Industry:

Even if you live in the rural areas where there are local farms to provide you with food, you would still feel the loss of the industry if all logistics companies stop operating.

Since most items are transported by trucks, when they stop running, there will be very few supplies left. Even gasoline will run out, increasing gas prices too. After a month of no trucks running, clean water supply will also run out.

See Also:How To Start An Import/Export Business In Nigeria: A Short Guide

5). Automation Plays A Huge Role In The Industry:

Despite the many jobs open in the logistics and supply chain sector, many of the tasks are becoming more automated. This allows for cheaper and more efficient transport and storage of goods.

While it will take time before driverless trucks transport goods, it will happen soon. Several large companies, including Amazon, the world’s biggest retailer, are investing in this technology. However, automation and robots are now replacing warehouse workers and will continue to do so in the future.

6). Online Retail Is Driving Growth In The Sector:

Online retail is growing exponentially as people realize how much easier it is to do their shopping in the comfort of their homes. But this also means that the more orders are placed, the more deliveries there will be to be made.

Beyond this growth, competition against online retailers is pushing the need for faster deliveries, at times within the same day. While websites like Amazon have goods available in their warehouses, the challenge is what is referred to as the last-mile, from the warehouses to the doorsteps. This is normally handled by third-party logistics partners, so growth needs to be seen in this sector.

See Also:7 Revenue Killers For African E-Commerce Businesses

7). RFID Tags Make It Possible To Know Where Your Product Is, Anywhere And Anytime:

There is a huge demand and need to be able to track goods at any point in the process, especially for items that are perishable. As the Internet of Things (IoT) takes off, it is projected to see an even higher demand.

8). Same-Day Delivery Is Quickly Becoming A Standard:

In order for online retail to compete with shops, it becomes more important to deliver goods as soon as possible.

Since advances and automation in warehousing allows online retailers to have stocks ready for delivery at any time, same-day delivery is no longer impossible.

See Also:The 3 Biggest Mistakes New E-Commerce Businesses Make In Africa

9). Big Data Analytics Will Change The Industry:

Beyond the big challenge of transportation and delivery, companies need to understand the demand of products to make sure they have enough in stock at all times.

In fact, today at any given time, it is possible to know what items are in stock, and how many. Analysis of demand will also trigger orders, so items will never be out of stock.

10). Last Mile Delivery Is Driving Innovation:

While transporting goods across oceans and borders has developed vastly, there are still some challenges on what is called the last mile delivery. This is why many retailers like Amazon are considering innovative ideas like drone deliveries. Thankfully, with the advancement in technology, they are able to catch up to increasing demands in online shopping without the need for more manpower.

To Sum It Up

Logistics and supply chain is an important part of everyone’s life today, with everything we eat, wear, and own, being transported to us as the customers. Once you take a deeper look at this all-important industry, you would find many interesting facts, as well as ambitious plans for the future to keep fulfilling everyone’s needs.

See Also:100+ Hot-Selling Products You Can Export From Nigeria And Get Paid In Dollars

About The Writer

This is a guest blog post submitted by Jordan Packer. He is the Operational Manager of Effective Logistics – 3pl logistics in Melbourne, Australia,and has more than a decade’s experience in warehousing, transportation, and logistics.

Note:This article has been edited for style and substance.

If you’ll like to submit guest blog posts like this to startuptipsdaily.com, please read theguidelines listed here.

What are your thoughts on these 10 interesting facts about the logistics and supply chain industry? Let me know by leaving a comment below.

Logistics, Supply Chain Management

10 Interesting Facts About The Logistics And Supply Chain Industry (2)


About Stan Edom

I'm an entrepreneur with an expertise in supply chain management, small business development, e-commerce, internet startups, and agriculture. In my spare time, I'm always trying to solve problems people face in their everyday lives with tech.

View all posts by Stan Edom →

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9 Comments Already

  1. 10 Interesting Facts About The Logistics And Supply Chain Industry (5)

    ADEOGUN JOSHUA GBENGA - September 9th, 2017 at 12:40 pm

    Sir,how can i become a successful business man,because i had more instrest on my work to become a supplier of aluminum but it need huge money in starting it and am not up to that point,sir is there a way to achieve this. Can’t wait to hear from you. Thanks

    • 10 Interesting Facts About The Logistics And Supply Chain Industry (6)

      Stan Edom - September 9th, 2017 at 5:07 pm

      Hi Joshua,

      I’d suggest you become a broker first, and after several successful shipments, you can go on to become the title holder.

      Thank you for asking.

      (Video) INSANE Reason For Supply Chain Disruptions!

  2. 10 Interesting Facts About The Logistics And Supply Chain Industry (7)

    Abdulmalik - September 12th, 2017 at 11:01 pm

    I have a school but not registered, how do go about about sourcing for monies for the school project?

    • 10 Interesting Facts About The Logistics And Supply Chain Industry (8)

      Stan Edom - September 13th, 2017 at 1:36 pm

      Please visit a financial institution to discuss your options or reach out to investors.

      Thank you for asking.

  3. 10 Interesting Facts About The Logistics And Supply Chain Industry (10)

    logistics Institutes in Kochi - February 27th, 2019 at 7:57 am

    Thank you for sharing this information.

    (Video) 10 Incredible Facts About Global Supply Chains and Sustainability

  4. 10 Interesting Facts About The Logistics And Supply Chain Industry (11)

    Raj Sharma - May 11th, 2020 at 11:29 am

    I wasn’t aware that the logistics and supply chain industry existed from the time of world war 2. There are a lot of changes that have taken place in this sector over the years. Automation is one of the important points that you have discussed in this article. Automation has played a big role in reducing costs and enhancing efficiency in the supply chain and logistics industry. Thank you.

  5. 10 Interesting Facts About The Logistics And Supply Chain Industry (12)

    Mark Gardner - January 8th, 2021 at 1:38 pm

    A great information, the details were understood clearly. Thanks for sharing.

  6. 10 Interesting Facts About The Logistics And Supply Chain Industry (13)

    Monica Brisfield - January 27th, 2021 at 12:52 pm

    Wow, it is a really great article. Enlightening !! Thanks for sharing.

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What is the most important thing in logistics? ›

A major element of logistics that most will recognise is transport. This includes all modes of transport including road vehicles, freight trains, cargo shipping and air transport. Without transport, goods would be unable to move from one stage to another within a supply chain.

Why logistics and supply chain is important? ›

Logistics plays an essential part in supply chain management. It is used to plan and coordinate the movement of products timely, safely and effectively. Customers now not only include your neighbors and local friends; they include people from across the globe, as well.

What are the top 3 challenges in the logistics industry right now? ›

  • Poor traffic predictions.
  • Cost of fuel.
  • Poor weather predictions.
  • The cost of fleet maintenance.
  • A lack of skilled drivers.
  • Poor routing strategies.

What impact does logistics have on supply? ›

Logistics is an important part of the supply chain.

It controls the effective forward and reverse flow of goods and services origin to recipient. This means that logistics has an impact on the shipment of goods and how quickly they can get to the consumer, again adding a competitive edge to other businesses.

What is the main function of logistics? ›

It involves planning, implementing, and overseeing the effective storage of goods and their transportation from the point of origin until the final destination (the point of consumption). In other words, logistics manages forward and reverse merchandise flows.

What are the benefits of logistics? ›

6 Benefits of Logistics Management
  • Visibility: Logistics management affords greater visibility into the supply chain. ...
  • Reduced overhead: ...
  • Improved customer experience: ...
  • Preventing loss: ...
  • Support expansion: ...
  • Competitive edge:
19 Sept 2022

Why is logistics important to the economy? ›

Logistics also plays a key role in the economy in that it supports the movement and flow of many economic transactions. It is an important activity with regard to the facilitation of the sale of practically all goods and services.

How does supply chain and logistics create value? ›

Thus, logistics contributes to the reduction of production costs by streamlining the supply chain. Location. Logistics adds value by taking better advantage of various locations, implying access to expanded markets (more customers), and lower distribution costs.

What is the biggest supply chain issue? ›

Here's some research on this topic. So, my answer would be the single biggest supply chain problem is forecasting accuracy as part of S&OP. Also, Gartner says that sales and operations planning (S&OP) is the single, most-important and critical cross-functional process.

What are the 5 biggest supply chain challenges? ›

Here are five major challenges that companies continue to face in their supply chains–and the solutions that will help logistics providers prepare for the future.
  • 1 - Huge E-commerce Growth. ...
  • 2 - Sudden Shortages. ...
  • 3 - Centralized Inventory. ...
  • 4 - Limited or Insufficient Visibility. ...
  • 5 - Patchwork Logistics.
3 May 2022

What is another word for logistical? ›

What is another word for logistical?
5 more rows

What are the types of logistics? ›

Logistics can be split into five types by field: procurement logistics, production logistics, sales logistics, recovery logistics, and recycling logistics.

Is logistics a good business? ›

Transportation and logistics are a critical aspect of development for any country as it ensures the delivery of goods from one place to another. This gives rise to many lucrative transportation business opportunities that one can thrive upon and earn good profits.

How does supply chain affect business? ›

Accurate information about a supply chain saves companies money. It helps manufacturers and retailers produce and transport only what they can sell. This eliminates the unnecessary expenses associated with producing, insuring, and shipping inventory a company can't sell.

Did you know facts about supply chain? ›

15 Facts About Supply Chain and Logistics
  • Over 5 Million Are Employed in Transportation and Warehousing. ...
  • Supply Chain Management Software Is Huge — and Still Growing. ...
  • Online Shoppers Keep Coming. ...
  • U.S. Online Retail Is Booming. ...
  • Different Types of Logistics Exist. ...
  • Most Fortune 500 Companies Use 3PLs.
6 Jun 2019

Why is supply chain interesting? ›

It's such a collaborative field and you meet so many incredible people along the way. The most interesting part is by far the people you meet. It's a fast-paced, critical-thinking, deadline-driven industry that can be fun and stressful. That's part of the draw of working in supply chain.

What are the future trends in logistics? ›

Digital brokerage, 5G, electric vehicles, green warehouses, and blockchain are technologies that are already in use. Given this, supply chain platform development is what every logistics company needs, whether it is a startup or an enterprise.

What logistics means? ›

Logistics is used more broadly to refer to the process of coordinating and moving resources – people, materials, inventory, and equipment – from one location to storage at the desired destination. The term logistics originated in the military, referring to the movement of equipment and supplies to troops in the field.

What are logistics skills? ›

Logistics skills are the competencies business professionals use to collect data, find areas of improvement within a supply chain and ensure that manufacturing operations perform accurately.

What are the important activities in logistics? ›

Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory control, supply/demand planning and management of third-party logistics services providers.

What is logistics in real life? ›

The Council of Supply Chain Management Professionals (CSCMP) explains that logistics is a broad term encompassing the processes of planning and executing the efficient flow of products and services from the source to the point of consumption. Essentially, these systems support the transportation of goods worldwide.

What are the principles of logistics management? ›

Therefore logisticians must understand and apply logistics Principles in managing logistics support, Logistics principles has eight principles those are : Logistics Intelligence, Objective, Generative logistics, Interdependence Simplicity, Timeliness, Forward Impetus and Security.

What are the challenges in supply chain? ›

Shippers' Top 5 Supply Chain Challenges:
  • Keeping transportation costs down.
  • Keeping up with customer/industry demands.
  • Sourcing consistent, reliable carrier capacity.
  • Keeping up with the latest technology solutions and demands.
  • On-time pickup and delivery performance.
30 Sept 2022

How do logistics create jobs? ›

As logistics is linked with sub-sectors like transportation, movers and packers, the transporters who are willing to work, therefore, are given the opportunities.

How logistics can help improve efficiency and reduce costs? ›

With an automated, cost-effective logistics system, a company can implement major strategic changes and improve operational efficiency. It also improves scalability, reduces manual errors, and provides a proactive approach to customer satisfaction.

What is the relationship between logistics and supply chain? ›

The quickest distinction to make is that supply chains are responsible for the overall sourcing, processing, and delivery of goods to the end customer, while logistics specifically focuses on moving and storing goods between different supply chain organizations.

What motivates you to work in supply? ›

Job satisfaction is high in supply chain roles. Whether it's due to the pay, room for growth, travel opportunities or the diverse nature of the role (I'd guess it'd be a combination of all four), supply chain jobs are proving to be well enjoyed.

Who benefits from supply chain issues? ›

Still, analysts say the biggest gainers from the supply chain issues could be ocean-liner, trucking and logistics companies. Those firms have sat squarely at the crossroads of lean capacity and rabid demand.

Why is supply chain slow? ›

Supply chain issues are slowing deliveries, but the real problem is all your shopping. Strong consumer demand is the main reason for supply snarls. Some experts still think the supply system is the bigger problem, though. But if demand is the problem, Fed rate hikes may help.

How can supply chain problems be overcome? ›

In this paper, I outline six ways to improve global supply chains:
  1. Boosting domestic production through on-shoring and near-shoring.
  2. Easing transportation jams.
  3. Prioritizing public health.
  4. Managing labor shortages.
  5. Fighting anti-competitive practices.
  6. Mitigating geopolitical tensions.
12 Jul 2022

What tools are used in supply chain management? ›

9 Best Supply Chain Management Tools
  • 1Shipping Status Tools. ...
  • 2Order Processing Tools. ...
  • 3Lean Inventory Tools. ...
  • 4Warehouse Management Tools. ...
  • 5Supplier Management Tools. ...
  • 6Demand Forecasting Tools. ...
  • 7Analytics and Reports Tools. ...
  • 8Security Features Tools.
15 Mar 2019

What are the 3 foundations of supply chain? ›

Generally the key aspects of Supply Chain management are Purchasing (sourcing), Planning (scheduling) and Logistics (delivery).

What is another name for supply chain? ›

The terms supply chain management (SCM) and business logistics management—or simply, logistics—are often used interchangeably.

What is a logistical problem? ›

A logistical problem occurs when your plans didn't account for something: "You forgot to get a permit for this parade, and now the marching band and floats are causing a traffic jam — what a logistical nightmare!" Logistical things can relate to strategy or management, though this adjective originally meant "pertaining ...

What is the opposite of logistics? ›

What is the opposite of logistics?
negligencemessing up

What type of service is logistics? ›

Logistics services are all the elements of your supply chain, from the factory to the end customer. They include transportation from manufacturer to warehouse, warehousing and order fulfillment, and delivery to the end customer. Logistics services include: Transport from the factory to the fulfillment warehouse.

What are the 3 main logistics objectives? ›

There are five main objectives of the logistics management process:
  • Minimize Manufacturing Costs.
  • Efficient Flow of Operations.
  • Better Communication Flow.
  • Provides Competitive Edge.
  • Better Inventory Management.
  • Logistics Management Solution.
25 Feb 2020

What are the 7 R's of logistics? ›

In this step, we look at the 7 Rs of logistics. So, what are the 7 Rs? The Chartered Institute of Logistics & Transport UK (2019) defines them as: Getting the Right product, in the Right quantity, in the Right condition, at the Right place, at the Right time, to the Right customer, at the Right price.

What is logistics growth strategy? ›

Logistics strategy uses management principles to ensure the optimisation of workflow. It includes planning, implementing, and maintaining the efficiency of warehousing, goods flow, services, and information. Logistics operations tend to focus exclusively on the manufacturing process.

What is supply chain in simple words? ›

A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product. A supply chain encompasses everything from the delivery of source materials from the supplier to the manufacturer through to its eventual delivery to the end user.

Who controls the supply chain? ›

The five most critical elements of SCM are developing a strategy, sourcing raw materials, production, distribution, and returns. A supply chain manager is tasked with controlling and reducing costs and avoiding supply shortages.

How does supply chain help the economy? ›

Foundation for Economic Growth – Societies with a highly developed supply chain infrastructure (modern interstate highway system, vast railroad network, numerous modern ports and airports) are able to exchange many goods between businesses and consumers quickly and at low cost. As a result, the economy grows.

How supply chain affect economy? ›

Supply chain disruptions lead to shortages of key goods, price inflation, factory closures, unloaded shipping containers and negative effects on a nation's economic wellbeing.

What are the 5 P's of logistics? ›


What are the 4 key processes in logistics? ›

Logistics operations: 4 key processes
  • Suppliers and manufacturers. Obtaining raw materials is the first part of supply chain management, which is taken care of by the manufacturer or supplier. ...
  • Distributed fulfillment centers. ...
  • Warehousing. ...
  • Shipping.
23 Oct 2020

What are the 3 main activities of logistics systems? ›

Logistics activities or Functions of Logistics
  • 1) Order processing.
  • 2) Materials handling.
  • 3) Warehousing.
  • 4) Inventory control.
  • 5) Transportation.
  • 6) Packaging.
6 Jan 2021

What are the 6 R's of logistics? ›

What are the 7 R's of logistics? ⚽ The 7 R's (or Rights) are the set of ideals and principles used by organizations that can be a foundation to be successful in the trucking and logistics industry. These are the 'right' product, quantity, condition, place, customer, time, and price.

What are the types of logistics? ›

Logistics can be split into five types by field: procurement logistics, production logistics, sales logistics, recovery logistics, and recycling logistics.

What are the 7 R's of logistics? ›

In this step, we look at the 7 Rs of logistics. So, what are the 7 Rs? The Chartered Institute of Logistics & Transport UK (2019) defines them as: Getting the Right product, in the Right quantity, in the Right condition, at the Right place, at the Right time, to the Right customer, at the Right price.

How do you measure logistics? ›

A primary way to measure logistics success involves establishing and comparing KPIs while taking into account market conditions. When extreme change occurs, like unprecedented supply chain stress, those indicators provide a baseline from which to adapt previous assumptions.

What are the two categories of logistics? ›

To summarize, Inbound Logistics refers to the movement of goods between businesses and their suppliers. In contrast, Outbound Logistics pertains to the flow of goods between companies and the end-user or consumer.

What is a logistics cycle? ›

The logistics cycle should be viewed as a complete list of activities from procurement of goods or materials to their final delivery to customers. The following main activities form a logistics cycle: Procurement. Transport and delivery. Warehousing – receipt and storage.

What is logistics control? ›

Logistics control means real-time delivery tracking. For instance, the mobile phone of the truck driver is integrated into our system. The driver can check where and when the deliveries are needed, how much gas has to be delivered to each location – and much more.

What are the advantages of logistics? ›

Here are some of the major advantages of logistics management:
  • Real-Time Visibility. ...
  • Enhanced Customer Experience. ...
  • Reduced Operational Cost. ...
  • Scalability. ...
  • Risk Management. ...
  • Warehouse Management. ...
  • Preventive Maintenance. ...
  • Boost Business Profitability.
28 Jun 2022

What systems do logistics companies use? ›

The 10 Logistics Management Software Solutions for Your Business
  • QuickBooks Commerce. QuickBooks Commerce makes it easy to track and fulfill orders because order, supplier, and customer data sync and integrate into one system. ...
  • Brightpearl. ...
  • Sortly. ...
  • Fishbowl. ...
  • Zoho Inventory. ...
  • Logiwa WMS. ...
  • OptimoRoute. ...
  • Avercast.
3 May 2022

What are the principles of logistics management? ›

Therefore logisticians must understand and apply logistics Principles in managing logistics support, Logistics principles has eight principles those are : Logistics Intelligence, Objective, Generative logistics, Interdependence Simplicity, Timeliness, Forward Impetus and Security.

How do you manage a supply chain? ›

Supply Chain Management (SCM) involves the flow of goods and services in an efficient manner.
5 Tips for Efficient Supply Chain Management
  1. Find Dependable Suppliers. ...
  2. Invest in Employee Development. ...
  3. Continuous Improvement. ...
  4. Leverage New Technologies. ...
  5. Improve Returns Management.
17 Sept 2019

How do you manage logistics operations? ›

Here are a few expert tips for practical transportation and transportation logistics management:
  1. Determine your transport logistics goals before implementing a new strategy. ...
  2. Use contingency planning to your advantage. ...
  3. Leveraging business automation applications and software. ...
  4. Get your employees to communicate regularly.
8 Oct 2019


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