An Overview of Logistics, Reverse Logistics, and Delivery in Supply Chain Management

While the media’s increased focus on the supply chain has brought the term into the general lexicon, confusion remains about its true meaning and how logistics and delivery relate to one another. Natural disasters, geopolitical risks, and other unforeseen events have made logistics in supply chain management more critical than ever in B2B and B2C fulfillment.

What is Logistics and Delivery?

According to the Council of Supply Chain Management Professionals, logistics is “a part of the supply chain process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customer requirements.”

Logistics primarily handles the movement and storage of materials used in product creation, while a supply chain refers to the entire network of people and companies involved in producing and delivering a product.

Interestingly, the term “logistics” was once mainly used in the military context to describe maintaining an army’s supply lines. Historical figures like Alexander the Great, Hannibal, and Wellington were known for pioneering efficient logistics systems that supported long-range campaigns.

Today, the role of logistics is just as vital to the success of modern businesses. Cutting-edge logistical technologies and 3PL logistics providers are now foundational to operational efficiency and customer satisfaction.

Main Components of Logistics

Logistics operations are central to delivering a seamless customer experience and sustaining profitability. Every element must function optimally to ensure resources arrive where and when they are needed. Key components include:

• Inbound Transportation: Refers to the shipment, storage, and distribution of goods from suppliers to manufacturers or warehouses.

• Outbound Transportation: Manages the flow of finished goods from the manufacturer to the end user, involving order processing and shipping.

• Warehousing: Enables strategic storage and tracking of inventory with critical data on quantities, arrival times, and locations.

• Order Fulfillment: Involves picking, packing, and shipping products to customers—either in-house or via a third-party logistics (3PL) provider.

• Fleet Management: Oversees transport assets such as trucks, planes, rail, and ships essential for regional and global supply chains.

• Inventory Management: Tracks the availability of raw materials and finished goods, minimizing stockouts and holding costs.

• Materials Handling: Coordinates the movement of items within storage facilities using manual, automated, or hybrid methods.

• Demand Planning: Uses predictive analytics to account for variables like weather patterns, market trends, or geopolitical factors.

Reverse Logistics

Reverse logistics refers to the management of product returns—essentially reversing the outbound logistics path to process items back from customer to seller. It is a crucial component of ecommerce logistics, sustainability, and supply chain optimization.

The Five Key Steps in Reverse Logistics:

1. Processing the Return – Begins when a customer initiates a return; includes return authorizations, assessments, and credits.

2. Return to Inventory – Evaluates whether items can be restocked, repaired, recycled, or disposed of.

3. Keep Returns Moving – Avoids waste by processing returned goods quickly and efficiently.

4. Repair – Enables returned goods to be refurbished and resold where applicable.

5. Recycle – Ensures responsible disposal or recycling of non-repairable items.

Benefits of Reverse Logistics

As ecommerce returns increase, reverse logistics has become essential for:

• Enhancing customer service

• Managing return-related costs

• Recovering product value

• Reducing waste through sustainable logistics practices

Shipping vs. Delivery

Though often used interchangeably, shipping and delivery refer to different stages in the logistics process:

• Shipping: The movement of products from the manufacturer or supplier to a distribution center or warehouse.

• Delivery: The final step, where goods are transported from the distribution center to the end customer.

Understanding this distinction is crucial for streamlining B2C and B2B logistics strategies.

Types of Delivery Services

3PL providers offer a range of delivery options based on urgency and customer needs:

• Standard Delivery: Typically 3–5 business days.

• Next-Day Delivery: Fulfilled overnight to meet urgent demands.

• Same-Day Delivery: Orders placed and delivered within the same day for maximum speed and convenience.

Last Mile Delivery

Last Mile Delivery, or Final Mile Delivery, is the final and most customer-facing part of the delivery process. It is also the most complex and costly step in ecommerce logistics, particularly in densely populated urban areas or remote rural regions.

Challenges include:

• Traffic congestion

• Limited delivery windows

• Driver shortages

• Cost per delivery drop

Efficient last-mile solutions are critical to customer experience (CX) and brand loyalty.

Supercharge Your Global Market Expansion with ModusLink

As you expand into global markets, ModusLink delivers the technology and expertise needed to simplify international ecommerce logistics. Our flexible end-to-end supply chain solutions allow you to access new customer bases without navigating the complexities of cross-border fulfillment, customs, or last mile delivery alone.

With scalable 3PL services, global warehousing, and real-time tracking, we ensure a seamless delivery experience—wherever you sell.

Contact ModusLink today for a private consultation with one of our knowledgeable agents.