The Logistics concept (TLC) aims to treat the many different elements that come under the broad category of distribution and logistics as one single integrated system. It is a recognition that the interrelationships between different elements, for example delivery transport and storage, need to be considered within the context of the broader supply chain. Thus, the total system should be considered and not just an individual element or subsystem in isolation.
Logistics affect many procedures and activities in a business, leading to increasing operational costs and decreased customer service in case of “bad” logistics management. Logistics interfere with many business areas and, thus, it is suggested to identify and determine several “cost trade-offs” in order to provide a positive benefit to the logistics system as a whole. Four different levels of trade-off have been identified.