The field of operations and logistics focuses on making sure that the right amount and quality of materials and goods are produced and delivered to the correct recipients according to schedule. The work involves production and service operations, with operations and logistics workers responsible for managing the supply chain, from purchasing raw materials to the production cycle to end delivery. In business operations, operations and logistics managers implement and manage systems for “efficient deployment of personnel, physical facilities, in-process inventories, finished goods, and related information or services,” as defined by the College of Business Administration at the University of Missouri—Saint Louis.
Operations is also known as supply chain management. The Council of Supply Chain Management Professionals defines supply chain management as the planning and management of all activities for sourcing and procurement, conversion, and logistics management activities. This type of work also entails coordinating and collaborating with suppliers, intermediaries, third-party service providers, and customers. In addition to manufacturing operations, supply chain management coordinates the business processes and activities across marketing, sales, product design, finance, and information technology. Logistics management covers inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/demand planning, and management of third-party logistics service providers.
The field of operations and logistics has roots that date back thousands of years. Sumerian priests created an early system of record-keeping for inventories of goods and business transactions. Egyptians devised plans for the organization and management of large projects entailing complex logistics, such as pyramid construction. The industrial revolution brought mass production and new divisions of labor. Companies needed ways to economically manufacture and distribute products, which gave rise to more study and analysis of production planning and inventory control.
Many different types of companies require the help of operations and logistics professionals to deliver and distribute their products as efficiently and cost-effectively as possible. There are no statistics that pertain specifically to operations and logistics as an overall industry, but statistics for sectors that include operations and logistics work give an idea of its role in commerce. For instance, the market research group IBISWorld reports that the U.S. freight packing and logistics industry generated $4.3 billion in revenue in 2024. There were nearly 6,570 freight packing and logistics businesses with roughly 28,845 employees.
Operations and logistics professionals work in manufacturing, government, companies and enterprises, wholesale trade, and professional, scientific, and technical services. Some companies have logistical departments, where logisticians and logistics managers work. Freight-shipping companies also employ operations and logistics managers. Operations and logistics workers are needed for scheduling and overseeing trucking, tracking inventory, mapping out the delivery of merchandise, and storing and handling products and materials.
The key jobs in the operations and logistics field include logisticians; transportation, storage, and industrial production managers; transportation, storage, and distribution managers; purchasing managers, buyers and purchasing agents, and cost estimators. Entry-level jobs include shipping and packing clerks and stock and freight clerks.
Careers in operations and logistics often rank high on "best job" lists. For example, U.S. News & World Report creates an annual list of the 100 best jobs in the United States. Occupations that rank high on its list offer a good work/life balance, low or manageable stress levels, excellent pay, and strong employment prospects with lots of jobs available. In 2024, U.S. News ranked the career of logistician as the 42nd-best occupation. The career of business operations manager was ranked 35th.
- Biotechnology Production Workers
- Buyers
- Continuous Improvement Managers
- Industrial Traffic Managers
- Logistics Analysts
- Logistics Engineers
- Manufacturing Supervisors
- Plastics Products Manufacturing Workers
- Purchasing Agents
- Rubber Goods Production Workers
- Supply Chain Managers
- Truck Dispatchers
- Wind Energy Operations Managers