The logistics system takes all the inputs of the company and moves it through all the manufacturing processes to its final destination. Its final destination is the customer.

It does this by using all the logistics activities like transport and warehousing.  Without these activities, it would not be possible to deliver the outputs that we want. We will look at these in more detail later on in this chapter.

 The output of this system is providing the customer with what they want, when they want it and where they want it.  This will give the firm a competitive advantage. What this means is that by giving the customer what they want, when they want it, where they want the customer will see us as better than all our competitors.