Logistics is an essential component of supply chain management, and includes the planning and management of goods, services and information from the point of origin all the way to the point of when customers acquire your product. Basically, logistics as a concept takes complex patterns of traffic and transportation, shipping and receiving, import and exports, warehousing, inventory management, purchasing, production planning and customer service and bundles it up in a deceptively simple package. Logistics is the blueprint for the supply chain and is a huge part of supply chain management. It literally is the backbone of today’s 21st century globalized supply chain world. Creating partnerships with suppliers, shipping services and warehouses and connecting these through an automated online system improves overhead costs and leads to faster delivery. This is a very important part of how you optimize a supply chain.