What is logistics?

Transforming challenges into logistics solutions

Logistics is fundamental to ensure that products reach their destination. Today, this process goes beyond the simple transportation of goods: the logistics chain is constantly transforming to adapt to new demands. Companies in different sectors, such as the technological or energy sectors, are investing in logistics optimization to achieve more efficient processes.

A large part of these changes are driven by the need to align activities with the Sustainable Development Goals (SDGs), such as sustainable infrastructure (SDG 9) and climate action (SDG 13). Therefore, transportation operations, logistics centers, and distribution chains are being optimized to comply with these objectives. But, what does logistics really mean in this context and how is it adapting to these new challenges?

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What is logistics?

Logistics is the management of the flow of products and materials from their origin to their destination, which may be an intermediary or the final consumer. Its planning and execution ensure that products arrive at the right time and place.

Logistics is currently facing an additional challenge: reducing its environmental footprint. This involves not only improving operational efficiency, but also adopting practices that minimize CO₂ emissions and support the transition towards a more environmentally friendly mobility model.

Advantages of optimized logistics in a company

Reduction in delivery times
Efficient logistics and transportation allow companies to comply with shorter delivery times.
Reduction in operating costs
By optimizing routes and improving the efficiency of processes, transportation and storage expenses are reduced.
Better inventory forecasting and control
Both excess stock and scarcity are prevented, which improves planning and reduces associated costs.
Minimization of risks
An efficient logistics system anticipates and manages possible eventualities in the supply chain.

How logistics has evolved

Logistics has evolved significantly, adapting to changes in each era:

19th century

The term "logistics" begins to be used in the military field to refer to the management and distribution of supplies and troops.

1950s

With the rise of industrialization and global trade, logistics expands to companies. It focuses on the planning of transportation and mass distribution.

'80s and '90s

The appearance of technologies such as the barcode and inventory management systems allows greater control over the supply chain, improving efficiency.

Beginning of the 21st century

With the rise of e-commerce, logistics has evolved towards faster and more adaptable systems, allowing us to manage large volumes of orders with greater flexibility.
The concept of reverse logistics is gaining relevance, since it allows companies to manage the return of products and facilitate their recycling. This fosters the circular economy by reintegrating materials into the production chain, reducing waste generation, and optimizing resources.
The COVID-19 pandemic generated an unprecedented transformation in the sector, driving the digitalization, automation, and redesign of supply chains to respond to the challenges of supply and fluctuation of demand.
Today, the integration of Artificial Intelligence (AI) and data analysis in real time allows logistics companies to optimize routes, forecast demands, and reduce waste, becoming an essential pillar for the development of sustainable mobility.

Repsol and logistics

One of our greatest challenges is to ensure that energy reaches where it is needed, whether it be to move people and goods or contribute to the maintenance of infrastructures in optimal conditions. This challenge requires logistics based on precision, innovation, and capacity to adapt, which allows us to face current demands and anticipate future demands.

To this effect, we have developed initiatives in fields such as aviation, maritime and road transportation, road infrastructures, and smart logistics, where we integrate advanced technologies such as artificial intelligence.

Advances in sustainable aviation fuels (SAF)

Supply of SAF for Volotea: we will supply up to 6.1 million liters of SAF (sustainable aviation fuel) between 2025 and 2029 to Volotea, which will contribute to the reduction of CO₂ emissions by approximately 80% in life-cycle terms compared to kerosene of mineral origin.
Collaboration with Iberia: we signed an agreement with Iberia so that sustainable aviation fuel (SAF) covers 5% of the fuel used in Inditex cargo transportation.
Purchase of SAF for the IAG group: we have carried out the largest acquisition of sustainable aviation fuel in Spain, with the purchase of over 28,000 tonnes. This agreement will benefit all airlines of the IAG group, which includes Iberia, British Airways, and Vueling, allowing a CO₂ emissions reduction of over 80% compared to kerosene of mineral origin.

Innovation in maritime transportation

Research in advanced fuels: we have begun a research project alongside Navantia, a military and civil shipbuilding company, to assess the technical and economic viability of advanced biofuels and synthetic fuels. These fuels are produced from renewable raw materials and combinations of renewable hydrogen and captured CO₂. The tests are carried out in our Technology Lab and in Navantia's facilities in Cartagena, committing to a significant reduction of CO₂ emissions with minimal adaptations in the existing fleets.

Road transportation: reduction of CO₂ emissions with renewable fuels

Agreement with Sesé for renewable biofuels: in 2024, we signed an agreement with Sesé, a leading logistics company, to supply 8 million liters of 100% renewable fuel over two years. This supply will allow 26.6 million kilometers to be traveled and the reduction of around 18,000 tonnes of CO₂, which represents a reduction of up to 90% compared to fuels of mineral origin.
Collaboration with XPO for the LESS® project: in 2023, we launched, in collaboration with XPO, the LESS® solution, which uses HVO biofuel (a renewable fuel that is obtained from vegetable oils and organic waste) to reduce CO₂ emissions in road transportation by up to 90%. At Repsol, we provide over 1 million liters of 100% renewable fuel.

Optimization of roads and durable asphalts

Implementation of advanced pavements: in collaboration with the infrastructure company Acciona, we have implemented an advanced pavement on roads in Spain that exudes a compound from its application, providing continuous protection against wear and extending the time between repairs. This technology allows the reduction in the frequency of interventions and the optimization of maintenance costs, ensuring the durability of roads.

Smart logistics with AI

Logistics optimization with Artificial Intelligence (AI): we implement RAIP, a modular system developed at Repsol to improve logistics processes, automate tasks, reduce transportation and storage costs, increase stock rotation, and minimize waste.
Reverse logistics system: we implement a reverse logistics system that extends the useful life of packaging and facilitates the recovery of oils that are difficult to process. We collaborate with responsible suppliers and acquire pellets from sustainably managed forests. This work has been recognized with AENOR's Circular Economy Business Strategy Certificate.