Logistics encompasses essentially everything from a resource’s origin to a finished good’s destination.
Logistics is a broad term. It includes the physical accumulation, transportation and final distribution of resources. Logistics transactions can be simple two-party deals wherein a manufacturer produces a good and ships it directly to a final destination for consumption. Logistics transactions can be more complex, with many parties offering one or more key functions, like sourcing, manufacturing, handling, inventory, transportation, warehousing, etc. The number of providers on a single shipment could be many, with brokered transactions often involving third-party logistics providers (3PLs), 4PLs and more.
- The physical process of accumulating resources
- The transportation or positioning of those resources
- The final distribution of resources
How big is the logistics industry?
The logistics industry ranges between $8 trillion and $12 trillion annually, calculated as a percentage of GDP.
The U.S. attributes up to 10% of its annual GDP to the logistics industry — roughly $2 trillion in 2019.
Global logistics industry by mode
The global logistics market was $9.6 trillion in 2018, broken down as: