The History of Logistics: Then and Now

In a world where next-day delivery has become the standard, it’s easy to forget that the history of logistics is as old as civilization itself. From the exchange of goods along ancient trade routes to the sophisticated digital platforms of today, the logistics industry has continued to adapt and evolve.

Transport and storage technologies were established by the Egyptian Empire (3300–332 BCE) to provide a consistent supply of food and necessities. Ancient Egypt's logistics system depended mostly on manual labor. By foot, sleds, or boats, laborers moved supplies and equipment along the Nile River. Later, to ease the movement of supplies and soldiers within its borders, the Roman Empire (27 BCE–476 CE) built a vast network of land (and marine) routes known as Roman roads.

Convoy ship transportation by water was also invented by the Romans, who built supply depots along their routes. Trade routes between Europe and Asia were created during this period. This made it easier for diverse regions to trade items including cloth, metals, jewels, and spices. For centuries, the Silk Road, one of the most well-known trade routes, served as the primary commercial channel between the East and the West.

Prior to the 3rd century BC, traders, merchants, shopkeepers, farmers, and artisans frequently exchanged or sold their goods locally. Shopkeepers and merchants realized that shipping goods by sea was far quicker, less expensive, and more effective than shipping them by land. However, there was little certainty that the goods would arrive at their destination because theft, storms, pirates, and rough waters frequently resulted in goods being lost.

Along with a massive increase in army size, the French Revolution and French military and political leader Napoleon Bonaparte’s control over Europe (1789–1815) restored mobility and range of movement to European logistics. The organization was made more efficient, baggage trains were reduced in size, and some of their load was transferred to the soldier's back. Establishing a fully military train service to run along a portion of the communication line in 1807 was a significant shift; this was split into parts, each supplied by a complement of shuttle wagons, hinting at the staged resupply system of the 20th century.

Thanks to the Industrial Revolution, Great Britain, France, and the United States were able to produce food, transportation, ammunition, and many other goods in proportions that no one could have ever imagined by the middle of the 19th century. However, new logistical tools and methods were developing long before 1914. The military employed logistics for many years, particularly during World Wars I and II, but businesses didn't start using logistics in relation to shipping until the 1960s. For companies, logistics included order processing, scheduling production, product distribution, warehousing, storage, and even customer support. They found that logistics enabled them to send goods to their clients more swiftly and affordably while also streamlining their shipping procedure.

Businesses started using computers in the 1980s to manage their shipping and logistics processes. Then, when the Internet took off in 1990, businesses started utilizing spreadsheets and map-based links to enhance their logistics processes. This period was also when companies began outsourcing their operations to third-party providers, or 3PLs. The modern logistics industry mostly depends on technology, which enables companies to plan, track, and arrange their shipments online.

Today, due to increased trade agreements, the surge in global e-commerce, client expectations, and information technology improvements, the logistics industry is expanding quickly. In fact, “looking solely at logistics, the global logistics market is expected to reach $6.55 trillion by 2027, growing at a CAGR of 4.7% between 2022 and 2027”. In addition to the role logistics plays in the economy, the industry has become so advanced that automation and robots are now utilized in warehousing! The efficiency of an operation is greatly increased by automated fulfillment warehouses and robotic technologies, which accelerate order processing while lowering human error.

From the ships of Ancient Egypt to today’s technological advancements, the history of logistics is proof of human brilliance. As technology continues to advance, the logistics industry will undoubtedly evolve. So, the next time you receive a package within 24 hours of ordering it, take a moment to appreciate the centuries of innovation that made it possible.