Differences between Inbound and Outbound logistics

Strong inbound and outbound logistics is critical to the success of a business. These processes affect production, profit, and customer service. There are many challenges to getting logistics right, and the costs of not perfecting these processes can be enormous. The implementation of the correct controls can help the success of the business.

What is the difference between Inbound and Outbound Logistics?

Inbound logistics brings supplies or materials into a business, while outbound logistics deals with moving goods and products to customers. Input is all about receiving, while output is mostly about delivery.

Attribute Inbound Logistic Outbound Logistic
​Key Relationships
Suppliers, vendors and their distributorsDistributors, wholesalers, retailers and end customers
Sourcing, procurement, materials handing, putaway Inventory management, order fulfillment, shipping
Raw materials or goods coming in from suppliersFinished products going out to customers
Strategic Imperative
Obtaining goods or materials the company needs to make its productsMeeting customer demand, supporting the sales process to generate revenue

Inbound Logistics

It is the way in which materials and other goods arrive at a company. This process includes the steps of ordering, receiving, storing, transporting, and managing incoming supplies.

Activities: Supply and acquisitions | Orders/purchases | Transportation | Reception | Material Handling | Storage | Inventory management | Expediting | Distribution | Reverse logistics.

The main challenges of inbound logistics are high costs, uncertain delivery dates and unpredictable delivery times.

Outbound Logistics

La logística de salida se centra en la demanda. El proceso implica al almacenamiento y envío de mercancías al cliente final. Los pasos incluyen el cumplimiento de pedidos, embalaje, envío, entrega y servicio de atención al cliente relacionado con la entrega.

Actividades: Gestión de almacén | Gestión de inventario | Transporte | Entrega | Entrega de última milla | Optimización de la entrega.

Los desafíos de la logística de salida pueden afectar a las ganancias y a la satisfacción del cliente. Los costes de inventario y envío pueden aumentar rápidamente, mientras que los pedidos incorrectos o con retraso ahuyentarán a los clientes.

Source: Oracle

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