Logistics is an integral component of global business operations,. It is through the behind-the-scenes work of logistics managers that we can enjoy many of the modern comforts we take for granted in our daily lives. In this article, we will provide a detailed background on logistics, charting its history and development. We will also take an in-depth look at various logistical jobs and the skills that logistics managers require, all of which are taught in the University of Johannesburg’s fully online Advanced Diploma in Logistics.
Please read on or use the article and FAQ outlines below to jump to any specific question or topic that interests you.
Introduction to logistics
Logistics is the lifeblood of modern commerce, ensuring that products and services are delivered efficiently and effectively to customers. It encompasses a complex web of processes, including procurement, transportation, warehousing and inventory management. Whether it’s delivering essential medical supplies, managing the movement of raw materials or delivering your latest online order, logistics underpins most economic activity.
Definition and meaning of logistics
Broadly speaking, logistics is “the practical organisation needed to make a complicated plan successful when a lot of people and equipment are involved.” A secondary definition is”the business of transporting and delivering goods.”
In today’s business world, logistics has become synonymous with its application to supply chain management. From a supply chain management perspective, logistics is the comprehensive coordination and management of the movement, storage and distribution of goods, services and information from the point of origin to the final consumer.
Logistics includes various activities, such as transportation, warehousing, inventory control and order fulfilment. At its core, logistics ensures that the right product reaches the right place at the right time while doing so efficiently.
The evolution of logistics: from military to business use
Historically, logistics originated as a military discipline for planning and executing the movement of troops, supplies and equipment. The term was taken from the French word “logistiques”, first used by Swiss military officer and writer Antoine-Henri Jomini in his 1838 book Summary of the Art of War.
Over time, businesses adopted the principles of military logistics - precision, efficiency and strategic planning - to optimise supply chains. In the modern era, advancements in technology and globalisation have transformed logistics into a critical component of commercial operations, driving efficiency, innovation and customer-centric services.
The role and purpose of logistics in modern business operations
In today’s globalised economy, logistics is the backbone of business operations. It ensures the seamless flow of goods, reduces operational costs and enhances customer satisfaction through timely delivery.
Logistics also helps businesses to adapt to market changes, mitigate risks and meet sustainability goals by optimising supply chain operations. By leveraging data analytics and technology, organisations can enhance their responsiveness to disruptions, improve resource allocation and maintain a competitive edge.
Key components of logistics management
Logistics management is made up of many different moving parts. Next, we will talk about the broad components of inbound logistics, outbound logistics, reverse logistics and inventory management, each comprising many smaller tasks.
Inbound logistics
Inbound logistics focuses on the processes required to source and deliver raw materials, parts,, and products to an organisation. It encompasses procurement, supplier coordination, and the management of goods in transit. A well-executed inbound logistics strategy ensures that production schedules are met without unnecessary delays or costs.
Supplier coordination
Reliable suppliers are needed to secure high-quality raw materials,, and companies must evaluate potential vendors based on factors such as their production capacity, lead times, pricing, and adherence to quality standards. Once suppliers have been chosen, logistics managers should build and maintain strong supplier relationships to ensure a steady flow of the materials needed for production.
Raw material procurement
This component focuses on sourcing and acquiring raw materials required for manufacturing processes. This process is the backbone of inbound logistics, ensuring that manufacturing or production processes are never disrupted due to material shortages. The seamless procurement of raw materials is critical for maintaining production schedules, optimising costs and ensuring the quality of end products.
Inventory handling and storage
Inventory handling and storage must be efficient for businesses to ensure optimal stock levels and quick access to needed stocks. An efficient system keeps storage costs to a minimum while maintaining sufficient inventory on hand to avoid supply delays.
Inventory reception and inspection
Any inventory used in a business's manufacturing or production process must be carefully inspected when it arrives. This includes ensuring that the delivered goods match what was ordered and that they meet specified quality standards before being stored.
Storage and warehouse management
Effective warehouse and storage management should optimise the use of available space and minimise waste. Careful records must also be kept to allow for the quick and efficient retrieval of goods.
Outbound logistics
Outbound logistics refers to the movement of finished products from warehouses to customers or distributors. It is central to customer satisfaction, directly affecting delivery times and order accuracy. Key activities in outbound logistics include order processing, shipping and final delivery.
Order processing and fulfilment
Order processing and fulfilment refer to the set of activities involved in receiving, processing, packing, and delivering customer orders. The process begins when a customer places an order, either through an online platform, by phone, or in person. Once an order is verified, inventory is allocated and must be retrieved from storage in the picking process. After picking, the items are packed securely to prevent damage and then shipped for delivery to the customer.
Distribution and shipping methods
Outbound logistics encompasses selecting appropriate shipping methods to deliver products efficiently while minimising costs. Common shipping methods include road, rail, air, and sea. Different shipping methods are appropriate for different products. For example, air shipping is the fastest but most expensive, making it suitable for high-value products with a short shelf life. Conversely, sea shipping is slow but much better suited for shipping large volumes of heavy cargo, such as iron ore or coal.
Customer delivery management
Managing the delivery process ensures that products reach customers on time and in good condition,, which is essential for maintaining customer satisfaction. Also known as last-mile delivery, this process should be carried out quickly and efficiently. Logistics managers can use route-planning software to help manage this process and reduce travel time and fuel costs.
Reverse logistics
Reverse logistics manages the return flow of goods and materials, ensuring sustainability and value recovery. This aspect of logistics has become increasingly important in recent years as businesses adopt circular economy models to reduce their waste and environmental impact.
Key activities in reverse logistics include handling customer returns, recycling and refurbishing products for resale. For example, electronics companies often implement take-back programmes where old devices are collected for recycling or safe disposal. These initiatives improve brand reputation while contributing to sustainability goals.
Product returns and exchanges
Reverse logistics manages the return process for defective or unwanted products. A strong reverse logistics process makes it easier for customers to either exchange their product or return it for a refund. While returns and refunds are best avoided, companies that manage this process well can build a better reputation with customers and are more likely to retain their customer base.
Waste and scrap management
Environmental issues are becoming more important for businesses to consider in order to maintain a good public reputation. Logistics managers need to implement proper policies and processes for disposing of or recycling waste that minimise environmental impact and align with sustainability goals.
Recycling and reuse initiatives
Where possible, a company's waste and scrap management procedures should prioritise recycling and reuse. This can be implemented internally within the company's manufacturing processes and in public-facing initiatives to facilitate and encourage customers to recycle and reuse purchased products.
Refurbishing and reselling strategies
The rising importance of environmental issues and sustainability among consumers encourages many companies to adopt refurbishing and reselling strategies. Where previously, the concept of inbuilt obsolescence made good business sense by encouraging or forcing consumers to buy newer versions of a product every few months or years, changes in consumer behaviour encourage companies to adopt more sustainable practices. Refurbishing returned goods for resale extends product life cycles and creates additional revenue streams.
Inventory management
Inventory management plays an important role in optimising the cost efficiency of supply chains. Inventory managers must ensure that they always have enough stock on hand to meet demand while also being careful not to overstock supplies that might otherwise end up sitting on shelves for long periods of time, unnecessarily driving up storage and warehousing costs.
Stock levels and forecasting
Inventory and logistics managers must closely monitor stock levels and accurately forecast future product demand to improve overall efficiency. Product demand is seldom steady throughout the year and can be impacted by many external factors. For example, an ice cream shop would need much more stock over a long weekend in hot weather, while an umbrella shop would need to keep much higher stock levels during the rainy season than during a drought.
Warehouse optimisation
Warehouse optimisation involves improving the layout, processes, and technology within a warehouse to maximise efficiency, reduce costs, and enhance productivity. Warehouses serve as the central hubs for receiving, storing, and dispatching goods, and their effective optimisation ensures that goods move seamlessly through the supply chain, reducing delays and operational bottlenecks.
Just-in-time (JIT) inventory systems
Just-in-time (JIT) inventory systems aim to maximise supply chain efficiency by reducing inventory levels to the bare minimum and timing the delivery of supplies so that they arrive as they are needed and therefore incur a minimum of storage and warehousing costs.
While large manufacturers have used this for several decades, online retail systems have taken this to an even higher level. Modern examples include print-on-demand for online booksellers, where products are only produced after a customer makes an order and businesses no longer need to keep any product stock on hand.
Types of logistics
Military logistics
Military logistics is the planning, executing and managing the supply chain to support armed forces during peacetime, training and combat operations. It ensures that troops have the necessary resources - such as equipment, food, fuel, medical supplies and ammunition - delivered to the right place at the right time, often under challenging and unpredictable conditions.
While military logistics is usually associated with armed conflict, it can also play a valuable role during peacetime. Countries often use their military to help with disaster management and humanitarian relief, using their logistics networks to deliver food, water, and medical supplies to areas in need.
Business Logistics
Business logistics focuses on coordinating materials, goods and services across supply chains in commercial enterprises. It is a core component of supply chain management, enabling organisations to optimise operations, reduce costs and deliver value to customers.
Business logistics covers inbound logistics such as procurement and sourcing, along with the management of transportation and inventory, final customer delivery, and any necessary reverse logistics to handle customer returns and refunds.
Event logistics
Event logistics involves the coordination, management, and execution of all logistical elements required for the smooth running of an event. These can range from corporate conferences and music festivals to sporting tournaments. Event logistics differ from the business logistics mentioned above in that it centres around one-time execution.
Events are typically one-off occurrences, which means logistics must be tailored to each event's unique needs. For instance, the planning and resources required for a concert differ significantly from those for a trade show. Event logistics demand a higher level of adaptability, coordination, and precision than other types of commercial logistics. Its success relies on proactive planning, real-time problem-solving, and the ability to manage diverse elements within a tight schedule.
Service logistics
Service logistics focuses on the planning, coordination and management of resources required to deliver intangible services. Unlike traditional logistics, which deals with the movement and storage of physical goods, service logistics ensures that people, equipment and materials are in place to provide seamless and efficient service delivery. This field is essential for industries such as healthcare, hospitality, utilities and IT, where the quality and timeliness of service significantly impact customer satisfaction and operational success.
Service logistics is distinguishable by its people-centric nature. While physical resources such as tools, vehicles, or spare parts are involved, the emphasis is on managing personnel and infrastructure to meet service demands. For example, in healthcare logistics, the focus includes delivering medical supplies and ensuring that doctors, nurses, and facilities are well-prepared to handle patient care.
Essentials of logistics management
Effective logistics management ensures the seamless flow of goods, services and information within a supply chain. It combines strategic planning, procurement, warehousing, transportation and the use of advanced technologies to create an efficient system. Each component of logistics management is interdependent, and their integration is essential to achieving operational efficiency, cost-effectiveness and customer satisfaction.
Planning and forecasting
Accurate planning and forecasting are important parts of logistics management. They ensure the alignment of supply chain operations with organisational goals. Overall, planning and forecasting can be divided into demand forecasting, strategic network planning, and capacity planning.
Demand forecasting
Demand forecasting involves predicting customer demand to ensure adequate inventory levels and resource allocation. Accurate demand forecasting enables businesses to avoid stockouts and overstocking, which can lead to lost sales or increased holding costs. By analysing historical data, market trends and seasonal patterns, logistics planners can align production schedules and supply chain operations with anticipated demand.
Strategic network planning
Strategic network planning focuses on optimising the structure of the supply chain, including the location of production facilities, warehouses, and distribution centres. This planning ensures that goods flow efficiently from suppliers to customers while minimising costs. Strategic network planning works hand in hand with demand forecasting by determining the best locations for warehouses and transportation routes to meet customer needs promptly.
Capacity planning
Capacity planning ensures that the supply chain has the resources needed to meet demand without overextending or underusing capacity. It involves assessing storage, transportation, and workforce capabilities. For example, if demand forecasting predicts a seasonal surge, capacity planning ensures that there are enough vehicles, staff, and warehouse space to handle the increase. Together, these elements ensure the smooth execution of logistics operations, balancing efficiency and flexibility.
Procurement and sourcing
Procurement entails the acquisition of materials and services required for operations. Sourcing the right vendors, negotiating favourable prices and fostering strong supplier relationships are essential for cost-effective procurement.
Vendor selection
Vendor selection is vital to maintaining a reliable supply chain. It involves evaluating quality, cost, reliability, and delivery times. An effective selection process ensures consistent access to high-quality materials and builds a foundation for efficient logistics operations. Vendor selection also influences other logistics functions, as dependable suppliers simplify inventory planning and transportation scheduling.
Price negotiation
Price negotiation seeks to achieve cost savings without compromising quality or delivery timelines. Skilled negotiation helps businesses secure favourable terms and manage procurement budgets effectively. Price negotiation impacts vendor relationships and sourcing strategies, as maintaining fair and transparent terms fosters long-term partnerships.
Supplier relationship management
Supplier relationship management focuses on building strong, collaborative relationships with vendors. This involves regular communication, performance evaluation and problem-solving to ensure suppliers meet expectations. Strong supplier relationships enhance flexibility, enabling faster responses to disruptions or changes in demand. Together with vendor selection and price negotiation, supplier management creates a stable and cost-effective procurement process.
Warehousing and storage
Warehousing ensures that inventory is stored safely and efficiently. Understanding different warehouse types helps businesses select appropriate storage solutions based on their needs.
Types of warehouses (public, private and bonded)
Warehouses are vital for storing goods and ensuring their availability when needed. Public warehouses offer shared storage space, while private warehouses are owned and operated by businesses for exclusive use. Bonded warehouses store goods subject to customs regulations, facilitating international trade. Selecting the right type of warehouse depends on factors such as cost, scale, and operational needs.
Warehouse layout and design
Optimising warehouse layout and design improves workflow efficiency and minimises handling time. Efficient layouts ensure that goods are easily accessible and store, reducing labour costs and errors. The layout is also influenced by the warehouse type, as bonded warehouses may require specialised areas for customs inspection.
Inventory tracking systems
Inventory tracking systems, such as barcoding and RFID (Radio Frequency Identification) technology, provide real-time visibility into stock levels and locations. These systems improve accuracy, reduce shrinkage and support inventory forecasting. Integration with warehouse layout design ensures that items are tracked and retrieved efficiently.
Inventory forecasting and control
Inventory forecasting and control ensure that stock levels align with demand, reducing costs associated with overstocking or stockouts. Accurate forecasting depends on demand analysis and real-time data from tracking systems. Together, these elements form a cohesive warehousing strategy that optimises storage, retrieval and replenishment.
Transportation management
Efficient transportation links the entire supply chain. Logistics managers need to plan and manage their transportation networks carefully to ensure timely delivery at a minimum cost.
Modes of transport (air, road, rail and sea)
Selecting the appropriate mode of transport is critical to balancing cost, speed and reliability. Air transport is fast but expensive, while road and rail are more economical for domestic shipments. Sea freight is ideal for bulk international shipping. Effective transportation management often involves multimodal solutions that combine these modes for efficiency.
Fleet management and optimisation
Fleet management oversees a company’s vehicles to ensure timely delivery and cost efficiency. This includes scheduling maintenance, tracking fuel usage and monitoring driver performance. Optimised fleet operations reduce delays and enhance reliability, contributing to overall transportation efficiency.
Route planning and scheduling
Route planning ensures that goods are delivered using the shortest, safest and most cost-effective paths. Advanced software considers traffic conditions, weather and delivery windows to optimise routes. Route planning also supports fleet management by maximising vehicle utilisation and reducing operational costs.
Technology in logistics
Technology has transformed logistics management, enabling businesses to operate with unprecedented efficiency. Tools such as enterprise resource planning (ERP) systems and transport management systems (TMSes) integrate various logistics functions, improving data accuracy and decision-making.
Integrating Internet of Things (IoT) devices and artificial intelligence (AI) further enhances logistics operations by enabling real-time tracking and predictive analytics.
Enterprise resource planning (ERP) systems
ERP systems integrate logistics functions with other business operations, providing real-time visibility into supply chain activities. These systems enable better decision-making by centralising data on procurement, inventory, transportation and customer orders.
Transport management systems (TMSes)
Transport management system (TMS) software streamlines transportation planning, execution and tracking. It helps businesses optimise shipping routes, select carriers and monitor delivery performance. Integration with ERP systems ensures end-to-end visibility across supply chain processes.
Internet of Things (IoT) and automation
Internet of Things (IoT) devices, such as sensors and GPS trackers, enable real-time monitoring of goods during transit and storage. Automation technologies, including robotic picking systems and automated warehouses, enhance efficiency and reduce manual errors.
Use of artificial intelligence (AI) in logistics
Artificial intelligence (AI) enhances logistics management by enabling predictive analytics, demand forecasting, and automated decision-making. AI-powered systems identify inefficiencies, suggest optimised routes, and predict disruptions, helping businesses adapt quickly.
Careers and courses in logistics management
Much in the way that logistics involves managing a complex network of multiple moving parts, many of the jobs in this field overlap. While there isn't a defined linear hierarchy among these positions, some jobs create clearer pathways for career progression. For example, a logistics coordinator may advance to transportation planner or warehouse manager roles before stepping into a senior position like supply chain manager. Similarly, warehouse and transportation managers play crucial roles in supporting supply chain managers, ensuring that operations at individual levels align with strategic objectives.
The interplay between these roles demonstrates the collaborative nature of supply chain and logistics management, where each position contributes to the efficiency and success of the entire system.
Logistics Coordinator
Logistics coordinators play a central role in supply chain management. They are responsible for organising and overseeing the efficient transportation, storage, and delivery of goods. They act as the central link between suppliers, manufacturers, transport providers, and customers, ensuring that goods move seamlessly through the supply chain. Logistics coordinators work closely with other roles, such as warehouse managers and transportation planners.
A diploma or degree in logistics, supply chain management, business administration, or a related field is typically required to qualify for a logistics coordinator position. Programmes such as the Advanced Diploma in Logistics or the Advanced Diploma in Transportation Management, offered fully online by the University of Johannesburg, provide the specialised knowledge and practical skills needed for this career.
This entry-level or mid-level position provides a strong foundation for advancing in the logistics field. Experienced logistics coordinators often progress into roles like transportation manager or supply chain analyst, where they take on broader responsibilities involving strategic planning and performance optimisation. To get a better idea of the positions available and potential salaries, click on the following links to popular job listing sites in South Africa.
Logistics coordinator job openings:
Pnet | Indeed | Google | LinkedIn | CareerJunction | Glassdoor
Logistics coordinator average salaries:
- Talent.com (R270,000 per year at the time of writing)
- PayScale (R225,491 per year at the time of writing)
Supply chain manager
A supply chain manager oversees the end-to-end operations of a supply chain, from procurement and production to distribution and delivery. They ensure the efficient flow of goods, materials, and information from suppliers to customers and develop strategies to streamline operations, reduce costs, and ensure customer satisfaction. Supply chain managers supervise teams across various departments, including logistics coordinators, warehouse managers, and transportation managers, to align operations with organisational goals.
As a more senior role, supply chain management is a natural progression for professionals with experience in positions like logistics coordinator or warehouse operations manager. Typically, supply chain managers hold a degree in logistics, supply chain management or a related field. While the Advanced Diploma in Logistics offered by the University of Johannesburg is not technically a degree, it is at the same qualification level as a degree, being at Level 7 on the National Qualifications Framework.
Supply chain manager job openings:
Pnet | Indeed | Google | LinkedIn | CareerJunction | Glassdoor
Supply chain manager average salaries in South Africa:
Warehouse manager
Warehouse managers manage the storage, organisation and flow of goods within warehouse facilities. Their duties include supervising staff, maintaining inventory accuracy and ensuring compliance with health and safety regulations. They collaborate with logistics coordinators and transportation planners to align warehouse operations with broader supply chain objectives.
This role offers a pathway to more senior positions, such as warehouse operations manager, overseeing multiple warehouses or larger facilities. Warehouse managers also provide critical support to supply chain managers by ensuring the smooth flow of goods through the supply chain.
Warehouse manager job openings:
Pnet | Indeed | Google | LinkedIn | CareerJunction | Glassdoor
Warehouse manager average salaries in South Africa:
- Talent.com (R353,200 per year at the time of writing)
- Payscale (R279,470 per year at the time of writing)
Transportation planner
Transportation planners focus on optimising the movement of goods by developing efficient routes and selecting the most cost-effective modes of transport. Their responsibilities include analysing traffic patterns, negotiating contracts with carriers and ensuring compliance with transportation regulations.
Transportation planners often work closely with logistics coordinators and managers to align shipping schedules with supply chain demands. With experience, they may advance to transportation manager roles, where they oversee broader logistics networks and carrier relationships.
Transportation planner job openings:
Pnet | Indeed | Google | LinkedIn | CareerJunction | Glassdoor
Transportation planner average salaries in South Africa:
Customs and trade compliance specialists
Customs and trade compliance specialists ensure shipments comply with international trade laws and customs regulations. They manage documentation, monitor tariffs and liaise with customs officials to prevent delays or legal complications.
This highly specialised role interacts with logistics coordinators and transportation managers to ensure smooth cross-border operations. Professionals in this field often progress into senior compliance roles or supply chain management positions, especially in companies with a global footprint.
While the role is essentially the same, most job sites refer to customs specialists, trade compliance specialists or sometimes international trade compliance specialists, so we have given links for both names.
Customs specialist job openings:
Pnet | Indeed | Google | LinkedIn | CareerJunction | Glassdoor | CareerJet
Trade compliance specialist job openings:
Pnet | Indeed | Google | LinkedIn | CareerJunction | Glassdoor
Customs specialist average salaries in South Africa:
Trade compliance specialist average salaries in South Africa:
- Talent.com (R470,000 per year at the time of writing)
- Payscale (R342,690 per year at the time of writing)
- SalaryExpert (R435,219 per year at the time of writing)
Supply chain analyst
A supply chain analyst uses data analytics to evaluate the efficiency and performance of supply chain operations. They identify trends, predict demand and recommend process improvements to enhance productivity and reduce costs. Analysts frequently collaborate with supply chain managers and logistics coordinators to implement their findings.
This role is an excellent stepping stone to strategic positions such as supply chain manager, as it provides a comprehensive understanding of supply chain dynamics. Analysts may also transition into roles focusing on specific supply chain components, such as inventory management or procurement.
Supply chain analyst job openings:
Pnet | Indeed | Google | LinkedIn | CareerJunction | Glassdoor
Supply chain analyst average salaries in South Africa:
- Talent.com (R650,000 per year at the time of writing)
- Payscale (R351,048 per year at the time of writing)
Transportation manager
A transportation manager oversees all transportation-related activities within the supply chain, including route planning, fleet management and carrier negotiations. They ensure that goods are delivered on time and within budget, working closely with transportation planners and logistics coordinators to align operations.
This is a senior position within the logistics hierarchy. Transportation managers often report to a supply chain manager. They may also collaborate with customs specialists to address regulatory requirements for international shipments.
Transportation manager job openings:
Pnet | Indeed | Google | LinkedIn | CareerJunction | Glassdoor
Transportation manager average salaries in South Africa:
- Talent.com (R780,000 at the time of writing)
- Payscale (R352,886 per year at the time of writing)
Warehouse operations manager
Warehouse operations managers oversee multiple warehouses or manage large-scale facilities. They focus on optimising storage systems, inventory management, and workflow efficiency. Their work involves strategic planning and the implementation of advanced technologies, such as automation and warehouse management systems.
This role builds on the responsibilities of a warehouse manager, offering a broader scope of influence. Warehouse operations managers frequently work alongside supply chain managers and analysts to ensure that warehouse functions support the overall efficiency of the supply chain.
Warehouse operations manager job openings:
Pnet | Indeed | Google | LinkedIn | CareerJunction | Glassdoor
Warehouse operations manager average salaries in South Africa:
FAQs
Study Logistics with UJ
The University of Johannesburg's fully online programmes allow students to study with this prestigious institution from anywhere and in their own free time. UJ's online programmes run on a carousel format, meaning that students can begin their studies at any one of six starting points throughout the year. The flexible online format allows students to balance their studies with work and personal commitments, making it ideal for working professionals.
The Advanced Diploma in Logistics offered online by the University of Johannesburg is designed for professionals seeking to advance their careers in logistics and supply chain management. The flexible online format allows you to balance your studies with work and personal commitments, making it ideal for working professionals.
Enrolling in this programme will give you a comprehensive understanding of logistics principles, including inventory management, transportation systems, and procurement strategies. Graduates will be well-equipped to excel in various roles and contribute to the efficiency and success of supply chains worldwide.
Those interested in this programme may also be interested in the Advanced Diploma in Transportation Management, also offered fully online, which covers similar topics to the logistics advanced diploma, but with more focus on the transportation component of the greater logistics supply chain.
