Outbound logistics and inbound logistics are common terms in the world of commerce and supply chains. In this article, we explain what each of these concepts consists of and how they can be applied to your business.
Inbound logistics is the network of processes that move goods to and from companies, meaning that they are responsible for all aspects of logistics management necessary to transport, store, and ship products through suppliers.
The main objective of inbound logistics is that the supply chain has all the necessary items to be executed correctly. A large part of a product’s profitability depends on inbound logistics being executed correctly. It is important that inbound logistics has a good service and is complemented by outbound logistics.
Outbound logistics refers to the transportation of certain products from a company to its customers. This type of logistics requires several partners such as the manufacturer, distributor, transportation equipment, saz, and retailer. When the company finishes manufacturing its products, they are transported to distribution companies or to customers through retailers.
A frequent problem faced by companies is a bad organization in the distribution center, this is solved with good communication between all areas and with a correct implementation of both logistics. Let’s remember that lack of planning can cause significant problems and therefore extra costs or losses for the company. Redesigning and optimizing inbound and outbound flows is an investment that will allow for proper inventory management, better customer service, shorter transfer times, solutions for order consolidation, and a more orderly and efficient process.
Both types of logistics have different functions and objectives, however, they complement each other to perform an adequate execution for each type of company. While inbound logistics is responsible for the supply of raw materials for the production of the company’s products, outbound logistics manages the warehouses and post-production logistics activities such as storage, packaging, freight management, reverse logistics, etcetera.
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