Logistics is one of the most vital functions in modern business. No marketing, manufacturing, or project execution company can succeed without the support of logistics.

Although the term logistics is relatively new, its activities are not. Logistics has existed since the dawn of civilization. Raw materials and finished goods have always been transported on both small and large scales. Things began to change with the development of transportation systems and the migration of populations from rural to urban areas. People no longer lived near production centers, and manufacturing no longer took place near residential areas. The geographical distance between production and consumption points increased — making the development of logistics even more essential.

However, logistics is not without failures. When logistics fails, the consequences can be catastrophic. From history, we can see that logistics failures not only impact companies and industries but can also determine the success or failure of wars and even political outcomes.

Historical Logistics Failures

One of the most famous logistics failures occurred in 1812, during Napoleon’s invasion of Russia.
At that time, with most of continental Europe under his control, the invasion of Russia was an attempt to force Tsar Alexander I to once again comply with the treaty terms Napoleon had imposed four years earlier. Having mobilized more than half a million troops from France and its European vassal states, Napoleon entered Russia with the largest army ever assembled — but something went terribly wrong.

Poor discipline, disease, and the harsh Russian winter were among the reasons for Napoleon’s defeat in 1812. However, the most critical reason was logistics failure.

Napoleon’s warfare strategy relied on the rapid concentration of forces at a decisive point to destroy his enemy quickly. He crossed into Russia with over 500,000 men, planning to end the campaign within twenty days by forcing the Russians into a major battle. As a contingency, he prepared a supply convoy capable of providing 30 days of food.

Reality, however, was far harsher. Napoleon soon discovered — as the Germans would again in 1941 — that Russia’s road network was extremely poor, forcing his troops to advance on a narrow front. Despite having prepared unusually large food convoys, supplies still had to be supplemented with whatever the soldiers could forage along the way.

As time passed, troops had to venture farther to find food. The French army weakened due to poor diet and shortages. Out of an impressive 600,000 troops, fewer than 100,000 eventually made it back to France.

Modern Warfare Logistics Failure

A more recent example of logistics failure, despite advanced transportation systems compared to 1812, was during the Second Lebanon War (2006).

In July 2006, the Israel Defense Forces (IDF) operating in southern Lebanon struggled severely with water shortages. Every bottle of water was immediately consumed. Dehydration was only one among a long chain of logistics failures throughout the conflict.

During the summer of 2006, the IDF disbanded its logistics division — the unit responsible for supplying combat forces. In previous wars, logistics divisions were considered cumbersome, often getting lost, seizing the wrong armored vehicles, or blocking critical routes.

The problem during the Second Lebanon War was a failure of logistics planning — the ground forces advanced much faster than their supply lines could support. Food and water carried by the combat troops lasted only one or two days and were consumed long before resupply could arrive.

Logistics was seemingly treated as a low priority by commanders. As a result, troops found themselves deep in enemy territory — both hungry and thirsty. In desperation, supply drops were attempted by air into zones heavily defended with surface-to-air missile (SAM) systems. These high-risk missions endangered pilots, aircraft, and equipment. In some cases, supplies reached IDF forces, but in others, the airdrops fell directly into the hands of Hezbollah.

Supply Chain Failure in the Modern Economy

A striking example of logistics and supply chain failure in the commercial world is the case of Webvan, an online grocery delivery company that went bankrupt in 2001.

Webvan promised to deliver products to customers’ homes within 30 minutes of ordering. At its peak, it operated in ten U.S. markets — including San Francisco Bay Area, Dallas, San Diego, Los Angeles, Chicago, Seattle, Portland, Atlanta, Sacramento, and Orange County — with ambitions to expand to 26 cities.

While Webvan’s market coverage expanded rapidly, its infrastructure spending far outpaced its sales growth, and the company gradually burned through its capital. A logistics strategy failure forced the company into bankruptcy.

Webvan placed an order exceeding USD 1 billion with the engineering firm Bechtel to build warehouses, purchase a fleet of delivery trucks, and install computer and office equipment — all before achieving any profitability.

By April 2001, Webvan announced it would run out of cash by Q4 2001 unless it secured additional funding. In the first quarter of 2001, after exhausting all USD 697 million of invested capital, Webvan officially declared bankruptcy.

In all of these cases — whether on the battlefield or in the boardroom — logistics proved to be both the lifeblood and the Achilles’ heel of success. When managed effectively, it becomes the foundation of victory and growth. When neglected, it can single-handedly lead to collapse.