Supply Chain Management Terms and Outbound Logistics

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Inbound Logistics:
Inbound Logistics represents one of the major business processes in transportation planning. Beyond excellence in operations, the main challenge is to plan inbound logistics jointly with outbound transportation volumes to increase consolidation where ever possible. Inbound logistics is the management of goods and materials which are arriving at your business premises. It is the opposite of outbound (or 'dispatch') logistics. For example, in a tomato canning plant, inbound logistics is concerned with the receipt and storage of empty cans and raw tomatoes, which arrive separately. Outbound logistics is concerned with the storage of canned tomatoes (the finished product) and dispatch to customers. Outbound Logistics:

The movement of material associated with storing, transporting, and distributing goods to its customers.

Inbound and outbound logistics is a vital part of the supply chain process. Once a good is produced, it must be shipped to its final destination. For a consumer packaged goods company to be successful, they must find the most cost effective means to do so, while satisfying the customer.

Reverse Logistics:
Reverse logistics stands for all operations related to the reuse of products and materials. It is "the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics." The reverse logistics process includes the management and the sale of surplus as well as returned equipment and machines from the hardware leasing business. Normally, logistics deal with...
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