Logistics System Design is the process of systematically organizing logistics workflows to build an efficient and cost-effective operational structure. It encompasses the design of all logistics components including warehousing, transportation, inventory, and information systems and serves as a critical factor in determining a company’s competitiveness within the supply chain.

It is a complex project involving the design and construction of a hub facility capable of handling the entire logistics process—including inbound, storage, picking, packing, and outbound operations. More than just a warehouse, it functions as a core infrastructure for logistics strategy. Factors such as efficiency, scalability, and the level of automation directly influence a company’s logistics competitiveness.

It refers to the design, implementation, and operation of IT-based systems to enhance the efficiency and precision of logistics operations. As a core enabler, it shifts logistics environments away from manual processes toward digitalization, automation, and real-time operational control.