What is the main purpose of logistics in supply chain management?

The main purpose of logistics in supply chain management is to plan, implement, and control the movement and storage of goods, services, and information within the supply chain. This is crucial because effective logistics ensures that the right products are delivered to the right place, at the right time, and in the right condition. This comprehensive approach to managing the flow of goods and information helps to minimize costs while maximizing efficiency and customer satisfaction.

Logistics encompasses various functions such as transportation, warehousing, inventory management, order fulfillment, and distribution. By coordinating these activities, logistics plays a vital role in aligning supply chain operations with business strategies, ultimately contributing to the overall effectiveness of the supply chain.

While other options touch on important aspects of supply chain management, they do not encapsulate the full scope and primary objectives of logistics. Focusing solely on reducing transportation costs overlooks the broader responsibilities of logistics, which include storage and information management. Managing financial investments in suppliers pertains more to procurement and supplier relationship management, which are separate from the logistics function. Conducting market research for customer preferences is unrelated to logistics, as it primarily falls within marketing and product development domains.