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Logistics is usually misinterpreted as only transportation of goods, which is not so. Transportation is just a part of the logistics. Logistics is a knowledge-based industry that requires procurement, transport, inventory control and distribution of goods. Logistics can safely be said to be the management of the flow of goods, information and other resources from the point of origin to the point of final consumption by the customer. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging and clearing. Logistics is a channel of the supply chain which adds the value to the goods by making them available at the right place and at the right time to the right consumer. Logistics is increasingly becoming a strategic source of competitive advantage with the increase in global production sharing, shortening of product life cycles and intensification of global competition. In this highly competitive business environment, the quality of logistics has assumed greater significance influencing firms� decisions such as which country to locate in, which suppliers to buy from or which consumer markets to enter. Essentially, high logistics costs coupled with low levels of service are a barriers to trade and foreign direct investment (FDI) and thus to economic growth. High logistics cost has also proven to the main cause of increase in the price of the product. Thus it makes the product much competitive in the international market. An industry where the product is perishable in nature, improved logistics is an un-integral part of the system.