Logistics has evolved over time. Initially, executives focused on physical distribution. The authors suggest that an initial focus on physical distribution was ogical since:

Significant savings could be achieved by leveraging their purchasing power with their suppliers for inbound raw materials and component parts.

The transportation costs associated with transporting inbound material represented a significant cost to the firm.

Purchasing and materials management represented the largest logistics costs for the firm.

The costs of handling outbound shipments of finished goods represented a significant cost to the firm.

Marketing of final products required the firms to focus on customer service related activities.