Four basic elements or components are distinguished in logistics: supply, transportation, facilities and services. This chapter describes the important technical tool electronic data interchange (EDI) as an example of electronic communication between computer systems without human intervention. In order to let the firm's management verify whether the implementation of a planned action is in fact realizing the targets set, the control cycle must include performance measurements that cover the physical operations of the logistic chain. Firms are faced with the task of locating warehousing facilities to meet customers' requirements at the lowest cost. The selection of warehousing sites is influenced by many factors and results from a sequence of decisions. Quantitative methods can assist in helping solve this type of problem. The classic transportation model can be used. This model is not restricted to warehouse‐ and outlet‐type problems but addresses a wide range of questions.