Logistics is the process of planning that a business uses in order to execute the efficient transportation and coordinate its supply chain operations. There are lots of tasks in logistics such as storage of goods, managing information accrued from point of consumption, arranging transportation movements, and arranging for services as per requirement.
Logistics is vital for moving goods and meeting customer requirements in a timely manner. It plays an important role throughout the delivery process. To meet the demand for fast with more convenient delivery, suppliers, manufacturers, distributors and outsource retail fulfillment to enhance their ecommerce logistics processes.
The different categories of logistics are:
- Third party logistics (3PL)
- Fourth party logistics (4PL)
- Inbound logistics
- Outbound logistics
- Reverse logistics
- Green logistics
- Construction logistics
- Digital logistics
- Military logistics
Inbound logistics includes the movement of raw materials, storage and transportation of goods from a different distribution such as retail store, fulfillment center, or distribution and logistics management as per the business model.
The first process of inbound logistics is buying of raw materials and products. In this
process, suppliers or manufacturers of business have to record about the materials and
goods which are ordered by business. When the material arrives at a storehouse, then you’ll need a decent framework for stock tracking to help you track when and how much stock has shown up at the storehouse. Reverse logistics is the process of consumer return and exchanges when new shipments arrive back at the storehouse and should be inspected and restocked into available stock.
Outbound logistics include moving the item to the end client. Such logistic duties typically apply to players that work moderately downstream, which are normally the last party in the supply chain. The duties include the capacity of manufactured stock, the transportation of goods for sale and at times, the shipping required to get certain items to the end consumer.
We can distribute outbound in three categories: order processing, product picking & packing and Shipping out finished goods. When an order is received, it is shipped off the storehouse and pushed into the line to be processed.
5 keys to a Successful Inbound and Outbound Logistic Process
- Supply chain management
1. Planning: Planning is the first and most important key to a successful inbound and
outbound logistics process. Businesses need to make a target to obtain the maximum amount of work done at the highest possible standards in the least possible time. A logistics team will have to make a plan to control delays and will control it before rising problems throughout the whole process.
2. Implementing: Implementation is the second step after planning. If you make a good plan for inbound and outbound logistics processes, but not implement it, it will never be a success. If planning is a paper work, then implementing is action work. Implementing doesn’t mean just starting the process, it really means that the process
must run according to plan. Businesses always need to consider implementing useful
software and automated software in inbound and outbound logistics.
3. Relationships: A good value relationship is not only important for families, but also for business especially logistics. A logistics business owner should make a relationship where they give value for suppliers as well as end consumers. The best
way of optimizing both the inbound and outbound logistics process is to expand a
strong relationship with suppliers and consumers.
4. Supply chain management: Each business’s supply chain extends beyond its own
facility. It comprises suppliers, distribution centers, warehouses and factories. In
supply chain management, raw materials move for processing, stored as finished
goods, and shipped to end-consumers.
5. Transportation: Transportation is the backbone of logistics. Transportation is vital to determine a business’s logistics and transport cost. It is very important to enhance
methods of moving products with cost- effective ways. Here are some of the factors
that include this decision-making process such as optimal delivery routes, cost-effective packaging, as well as lead time to provide different modal options like rail, air, or barge.
To stay in today’s highly competitive business environment, logistic businesses need to find out the best ways to improve their inbound and outbound logistics processes that make the most sense for their business.
Eli Smith is marketing manager of Trade System. She is passionate about the marketing, ecommerce and logistics industry.