In the last 15 years, considerable efforts have been placed on integrating product and process design. This integration can improve product quality, reduce product development time and costs, and reduce manufacturing costs. However, logistics, which can account for an important portion of the total costs, generally has been considered only subsequent to the product and process design. This sequential approach restricts the alternatives for design and operation of the logistics system, and can result in suboptimal performance and substantially increased cost. This paper provides an overview of logistics functions, and describes how activities such as packaging, material handling, warehousing, transportation, etc. are affected by product and process design decisions. The linkages between logistics operations and product and process design decisions indicate the necessity to develop new, more inclusive, concurrent methodologies of design. The challenge of the 21st century is to integrate logistics, product and process design to optimize manufacturing design.