5 Major Difference Between Inbound And Outbound Logistics

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What Is Inbound Logistics?

Inbound logistics refers to the network that brings goods or material to the business. Inbound logistic network includes everything you need to transport, store and deliver goods to your business from the supplier. The actual products that come into your business depend on the nature of your business. Inbound logistics can cover aspects such as raw material if you are a manufacturing firm or finished products if your business deals with assembly. Essentially, inbound logistics includes everything your business operations require to create the finished product that you ultimately sell.

As a business owner, for your inbound logistics network to operate as efficient as possible you must understand and optimize your inbound logistics network, you must have a full picture of the network so as to optimize  everything from receiving products from suppliers to transporting them to your storage facilities. One of the common ways business organizations do this is by working with third-party logistics provider.

Processes Involved In Inbound Logistics

  • Recording & Receipts: This helps to ensure that each step in the process is completed and communicated with accuracy.
  • Receiving process should start immediately after pre-receipts have been loaded into the WMS system.
  • Receiving Real-Time Information.

What You Need To Know About Inbound Logistics

  1. The influx of raw material and parts from suppliers to the manufacturing plant or a business organization is what is called inbound logistics.
  2. Inbound logistic involves interaction between supplier and the firm.
  3. Inbound logistics is aligned towards the usage of resources and raw materials within the manufacturing or assembly plant.
  4. Inbound logistics is related to material management and procurement.
  5. The processes involved in inbound logistics are sourcing, warehouse receiving and material management.

What Is Outbound Logistics?

Outbound logistics refers to the processes of storing, moving and distributing goods. It includes all systems that help prepare an order and get it to the end customer through delivery service. The different stages are warehousing and storage, distribution, transportation and last-mile delivery.

As a business owner you need to optimize your outbound logistics network to ensure that it runs as efficient as possible. This entails having the labor, equipment and resources that are required to efficiently transport your goods to customers. Optimizing your outbound logistics network can result in substantial cost savings while allowing you to more accurately determine delivery windows.

Processes Involved In Outbound Logistics

  • The first step of an inbound logistic is to validate orders, check for errors or duplications and handle exceptions immediately.
  • Replenishment and product picking.
  • Packing, staging, checking and loading.
  • The last step to a successful outbound logistic process is shipping the product to its final arrival place and creating a log of the process for your records.

What You Need To Know About Outbound Logistics

  1. The outward movement of final good from the company or business organization to the end user is what is referred to as outbound logistics.
  2. Outbound logistics is between the firm and customers.
  3. Outbound logistics focuses on the outflow of final goods or product from the firm to the end customers.
  4. Outbound logistics is related to customer service and channel distribution.
  5. The processes involved in outbound logistics are shipping orders to end users or customer service involving after sales service such as delivery.

Also Read: Difference Between Forward And Reverse Logistics

Difference Between Inbound And Outbound Logistics In Tabular Form

BASIS OF COMPARISON INBOUND LOGISTICS OUTBOUND LOGISTICS
Description The influx of raw material and parts from suppliers to the manufacturing plant is what is called inbound logistics.   The outward movement of final good from the company to the end user is what is referred to as outbound logistics.  
Involves Inbound logistic involves interaction between supplier and the firm.   Outbound logistics is between the firm and customers.  
Focus Inbound logistics is aligned towards the usage of resources and raw materials within the manufacturing or assembly plant.   Outbound logistics focuses on the outflow of final goods or product from the firm to the end customers.  
Relation To Other Aspects Inbound logistics is related to material management and procurement.   Outbound logistics is related to customer service and channel distribution.  
Processes The processes involved in inbound logistics are sourcing, warehouse receiving and material management.   The processes involved in outbound logistics are shipping orders to end users or customer service involving after sales service such as delivery.