Most logistics professionals and academics agree that logistics is an essential function within business. Furthermore, there has been a trend over the last few years to consider logistics as a process that creates value. While the terms value and value‐added have experienced popular usage, they are neither clearly defined nor accurately measured. A primary goal of this article is to clarify these definitions, in the context of how value is created by logistics. Based on empirical research, definitions of value and value‐added are suggested that are founded upon and related to the perspectives of practicing managers. Following a brief literature review, details are provided about the objectives and methodology of the research that was conducted. Last, managerial implications and the key messages for both logistics managers and researchers are presented.