Inbound and outbound logistics refer to the two most common processes for transporting goods in the whole retail supply chain. Although they all carry out inbound and outbound transportation through various distribution channels, inbound logistics handles supply and outbound logistics meets demand.
What Is Inbound Logistics And Outbound Logistics
Inbound logistics process refers to the transfer of raw materials, finished products and supplies from manufacturers or other distribution channels to distribution centers, warehouses or retail stores.
The outbound logistics process originates from the distribution center and then is delivered to the final destination.
Importance Of Inbound And Outbound Logistics
Inbound and outbound transportation refers to commodity transportation between countries and between countries and regions. Due to the limitation of geographical conditions, the transaction of some commodities needs inbound and outbound logistics. Inbound outbound logistics not only allows people to buy what they want. It can also drive the development of the market through trade, so as to promote economic growth.
Inbound And Outbound Logistics In Supply Chain Management
Inbound and outbound logistics is only one part of supply chain management. Supply chain management manages all the links between suppliers, producers, distributors and customers. Logistics helps synchronize the supply chain by controlling the flow of goods from the point of origin to the point of consumption. Supply chain participants, such as suppliers and buyers, find it helpful to work in partnership. The two companies work together for the common good. Unlike strategic alliances or project partnerships, these partnerships are usually open-ended.
Difference Between Inbound And Outbound Logistics
The main difference between inbound and outbound logistics is who the products and goods end up with.
Inbound logistics is receiving the goods from the manufacturer or producer.
Outbound logistics is sending the product to the final customer.
Inbound And Outbound Logistics Management Process
Inbound logistics process may include the following.
1. Purchase of materials
Sourcing raw materials is usually the first step in the manufacturing of goods. You need to know how much raw material is needed and find the right supplier.
2. Receiving goods
Once an order has been placed with a supplier, the business needs to book loading in advance so that a dock can be reserved for stock unloading. You need to know exactly where to receive the goods, assign the unloading area and store the inventory.
3. Reverse Logistics
Refers to the process of transporting goods from the end user or customer back to the seller or manufacturer.
The outbound logistics process may include the following.
1. Order processing
First, the customer orders the product on the e-commerce website, which is then confirmed by the warehouse. This is done through the warehouse and supply chain management system.
2. Picking and packing
After the order is confirmed, workers pick the relevant products from the inventory. Then, the warehouse management system updates the inventory and adjusts the product quantity. The selected products are packed, labeled with customer details and sorted.
3. Sorting and shipping
After sorting the packaged goods, the freight truck will deliver the order to the relevant distribution center. Distribution staff will receive the orders according to the delivery area.
The final step of the outbound logistics process is the delivery of the ordered product at the customer's or end user's doorstep.