What is Logistics? 6 Essential Facts You Must Know

In the era of globalization and booming e-commerce, logistics has become an indispensable component in every business value chain. So, what exactly is logistics? What activities are involved, what role does it play, and how is it different from import-export or supply chains? In this article, ExtendMax will guide you from the concept to key features, job titles, and personnel requirements in the logistics field.

1. What is Logistics?

1.1 Definition of Logistics

According to the Council of Supply Chain Management Professionals (CSCMP), logistics is the process of planning, implementing, and controlling the efficient movement and storage of goods, services, and information from the point of origin to the point of consumption.

In Vietnam, logistics is commonly referred to as "hậu cần" (support services), encompassing all transportation, warehousing, distribution, and freight forwarding activities that support business operations.

To better understand the concept, logistics includes the following activities as defined in Decree 163/2017/ND-CP:

Container loading and unloading services (excluding airport services)
Container storage services under maritime transport support
Storage services supporting all modes of transport
Freight forwarding agents and delivery services
Customs clearance services
Document verification, freight brokerage, cargo inspection, sampling, and weighing
Cargo acceptance and transport documentation preparation
Wholesale and retail support services: inventory management, consolidation, classification, and delivery
Freight transportation services via sea, inland waterways, rail, road, and air
Technical analysis and inspection services
Multimodal transport services
Other transportation services

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1.2 Key Components of Logistics

An effective logistics system typically includes the following elements:

Transportation: Moving goods via road, sea, or air.
Warehousing: Storing goods efficiently and managing inventory.
Inventory Management: Maintaining optimal stock levels.
Order Fulfillment: Ensuring accurate and timely order delivery.
Information Flow: Managing data related to transport, storage, and delivery.

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2. Key Characteristics of the Logistics

Industry Logistics has the following notable characteristics:

Global Nature: Logistics operates beyond borders, essential for international trade.
Cross-sector Involvement: Connected to production, commerce, finance, technology, and legal systems.
High Tech Requirements: Adoption of warehouse management software, GPS tracking, blockchain, etc.
Time Pressure: Requires precision and timely delivery, directly impacting business performance.

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3. Role of Logistics in Business

Logistics serves as the backbone of the supply chain by:

Optimizing transportation, inventory, and order processing costs
Increasing business competitiveness
Ensuring timely and accurate delivery
Supporting domestic and global market expansion
Enhancing customer experience through flexible delivery services

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4. Job Titles and Responsibilities in Logistics

The logistics industry offers a wide range of positions depending on the business scale:

Title	Main Responsibilities
Import-Export Officer	Handle documentation, customs declaration, coordinate international freight
Warehouse Coordinator	Manage inventory, organize incoming and outgoing goods
Transportation Staff	Monitor delivery schedules, vehicle coordination, liaise with transport partners
Logistics Specialist	Plan and optimize overall logistics operations
Logistics Manager	Oversee logistics operations and report to senior management
Customer Service Officer	Maintain customer relationships and ensure service quality
Procurement Officer	Source materials and services needed for logistics and operations
Customs Specialist	Manage customs procedures to ensure efficient and lawful cross-border goods flow

*Job Titles and Responsibilities in Logistics*

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5. Differences Between Logistics, Supply Chain, and Import-Export

Logistics connects production and consumption. Import-export focuses on international trade, while the supply chain encompasses all activities from production to the end customer.

Criteria	Logistics	Supply Chain	Import-Export
Definition	Planning and managing the flow of goods and related information	A network covering everything from supply planning to product delivery	Transactions of goods/services between businesses across countries
Scope	Storage, transportation	From raw materials to distribution	International trade of goods
Objective	Efficient flow of goods and customer satisfaction	Optimize overall production and delivery	Comply with customs regulations and maximize profits
Role	A subset of the supply chain	Includes logistics and other steps	Includes logistics activities
Responsibility	Safe and timely transport	Manage entire production-to-delivery process	Handle customs and legal processes

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6. Personnel Requirements in Logistics

6.1 Admission Requirements

Logistics and Supply Chain Management programs often consider the following exam combinations:

A00: Math – Physics – Chemistry
A01: Math – Physics – English
D01: Math – Literature – English
D90: Math – Natural Sciences – English

6.2 Ideal Qualities for Logistics Professionals

Dynamic, logical thinking, and adaptability
Strong planning and organizational skills
Proficiency in foreign languages and IT
Teamwork skills and high responsibility
Communication, negotiation, and persuasion abilities
Leadership and management orientation

6.3 Logistics Salary and Career Prospects

With a growing demand for skilled professionals, logistics salaries are highly competitive:

Entry-level: VND 5-9 million/month
Experienced staff: VND 9-13 million/month
Mid/senior management: VND 15-23 million/month
Top corporations: Up to VND 80-100 million/month

According to the HCMC Center for Labor Market Forecasting, from 2020–2025, the city will need 310,000 – 330,000 new workers annually, with logistics accounting for 5%.

6.4 Success Factors in Logistics

Key criteria for success include:

Technical knowledge in customs, transportation, warehousing
Foreign language proficiency for documentation and communication
Soft skills: teamwork, problem-solving, organization
Technology: ERP systems, logistics software, Excel
High responsibility: Small errors can disrupt the supply chain

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