Inbound Logistics: The activities involved in receiving, storing, and distributing raw
materials and components from suppliers to production facilities.
Outbound Logistics: The activities involved in storing, transporting, and distributing
finished goods from production facilities to customers.
Elements in Detail
1. Transportation:
Key Modes: Air, sea, rail, and road.
Factors to Consider: Cost, speed, reliability, and regulatory compliance.
Importance: Ensures timely delivery, affects overall logistics cost, and impacts
customer satisfaction.
2. Material Handling:
Equipment: Forklifts, pallet jacks, conveyor belts, automated guided vehicles
(AGVs).
Goals: Minimize damage, reduce handling costs, and increase efficiency.
Techniques: Manual, automated, and semi-automated systems.
3. Inventory Management:
Techniques: Just-in-time (JIT), Economic Order Quantity (EOQ), and ABC analysis.
Objectives: Balance supply and demand, reduce holding costs, and prevent stockouts
and overstocking.
Tools: Inventory management software and enterprise resource planning (ERP)
systems.
4. Warehousing:
Types: Distribution centers, fulfillment centers, cross-docking facilities.
Functions: Storage, consolidation, product mixing, and order picking.
Design: Layout planning, shelving systems, and warehouse management systems
(WMS).
5. Information Management:
Technologies: RFID, barcode scanning, GPS tracking, and logistics management
software.
Importance: Enhances visibility, improves decision-making, and supports
coordination across the supply chain.
6. Communication:
Channels: Electronic Data Interchange (EDI), emails, customer relationship
management (CRM) systems.
Importance: Facilitates collaboration, ensures accurate and timely information flow,
and supports problem resolution.