Inbound logisticsInbound logistics focuses on the supply part of supply and demand. It's all about the movement of raw materials to production. For example, transporting the raw materials necessary for the production of goods, tools needed for manufacturing, consumable products like fuel or energy, and additional spare parts or components.
Inbound logistics also includes business processes like:
So where is our sweatshirt within its inbound logistics journey?
Outbound logisticsOutbound logistics focuses on the demand part of supply and demand. It’s all about transporting the finished goods to the customer or end user. While the finished product requires transportation to the retail location, fulfilment centre, or end consumer; this process is also comprised of many different business functions such as:
So where is our sweatshirt within its outbound logistics journey?
Now that our sweatshirt is a finished product, there are several places it may go after the production facility. Depending on the business model of the company selling our sweatshirt, it could go into a warehouse, to be held before being sent to a retail store. Or, it could go straight to a fulfilment centre, ready to be sent directly to the end consumer when they place their order.Whether it is to a fulfilment centre or a shopping centre; the transportation, facilities, and business processes that brings the sweatshirt from manufacturing to our closets are all part of the outbound logistics ecosystem.
Reverse logistics focuses on finished products going back into the supply chain, from the end use to either the manufacturer or retailer. Most simply, product returns are the primary reason for the function of reverse logistics — when a customer sends the product they bought back to the company, it enters the supply chain again. However, reverse logistics can also include the return of surplus materials, leased manufacturing equipment, or end-of-life product recycling. This process can be a complex dance of numerous business functions, including: