What does the logistics process consist of?

Discover the different stages of a logistics process and how the various links work together.

What is a logistics process?

When you map out logistics, it involves much more than just transportation. It includes receiving goods, storage, inventory management, order processing, shipping and returns—all links that need to work together seamlessly. Is your inventory accurate, are orders processed efficiently, and do goods arrive on time? Then your flow of goods remains manageable, even as volumes increase. If something goes wrong somewhere along the way, you will usually notice it first in your service levels or costs. Exactly what this process looks like also varies by industry and product type, as you can see in each stage below.

Stage 1: Receiving a product

Everything starts when your goods arrive. You check quantities and quality and register the products before they are given a place in the warehouse. If you skip a step here, you risk errors accumulating further down the chain, for example in your inventory records or during order processing. If you work with fragile products, this is the point where you need to carefully check for damage. If you handle hazardous materials, this stage is subject to strict registration and safety regulations, requiring the right knowledge and expertise.

Stage 2: Storing goods in a warehouse

After receiving the goods, they are assigned a designated location. Do you always know how much inventory you have in stock, or do you only find out when an order cannot be fulfilled completely? An organized storage system ensures that products can be found quickly when needed, while up-to-date inventory visibility prevents you from holding unnecessarily large—or insufficient—stock levels. If you work with hazardous materials, additional requirements apply to storage conditions and the separation of different goods. Fragile products, on the other hand, require storage methods that prevent damage during handling.

Stage 3: Receiving an order

Once an order comes in, you pick and check the required products from inventory. This stage connects directly to fulfilment: from order processing to preparing the goods for shipment. If timely delivery is crucial for your products, such as fresh or time-sensitive goods, speed and planning are already critical at this stage. When order processing and inventory management are properly aligned, delivery times remain predictable, even as your order volume grows.

Stage 4: Shipping the product

Once orders have been picked, they are packed and prepared for shipment. Do you ship directly to consumers, or are your goods delivered to stores, business locations or other distribution points? This can make a significant difference. If you operate in retail, you deal with smaller, more frequent deliveries to multiple store locations, often within strict delivery windows. If you operate in B2B, the focus is more on larger order volumes, less frequent deliveries and longer-term agreements with regular customers. Which situation applies to you largely determines how you should organize your carrier and shipping method.

Stage 5: Arrival at the customer

The final step in the outbound journey is delivery to your customer. If the shipment arrives on time and in good condition, you build trust in your brand. With time-sensitive products, delays at this stage can immediately result in lost value, such as a missed opportunity or a dissatisfied customer. With real-time track & trace, both you and your customer can see exactly where a shipment is at any given time.

Stage 6: Aftercare following product delivery

Your process does not stop once a shipment has been delivered. Returns and customer inquiries are also part of the process. When a product is returned, you need to receive, inspect and register it, and determine whether it can be resold. For fragile products or hazardous materials, this assessment requires additional care. If this process is not properly managed, products may remain outside your inventory unnecessarily, making your inventory records less reliable. A poorly organized returns process ultimately costs you money, time and customer trust, which is why it deserves just as much attention as the rest of your logistics process.

A logistics process that grows with your business

Your logistics needs evolve along with your business. Order volumes increase, your product range expands, or you experience temporary peaks in demand. Your logistics process therefore needs to be not only efficient at your current volume, but also flexible enough to adapt as your business grows. Would you like to discuss this with us without obligation, or are you curious about how a company like Hageman can organize each stage of this process for you? Explore our logistics services or get in touch for personal advice.

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