Strong inbound and outbound logistics are crucial to the success of a business. These processes affect production, profits, and customer service. There are many challenges in getting logistics right, and the costs of not perfecting these processes can be enormous. But putting the right controls in place can help your business achieve success.
What Is the Difference Between Inbound and Outbound Logistics?
Inbound logistics bring supplies or materials into a business, while outbound logistics deals with moving goods and products out to customers. Both focus heavily on the transporting of goods. But inbound is all about receiving, while outbound focuses on delivery.
Inbound vs. Outbound Logistics
ATTRIBUTE | INBOUND LOGISTICS | OUTBOUND LOGISTICS |
---|---|---|
Direction | Inward | Outward |
Focus | Supply | Demand |
Role | Receiving | Delivery |
Key Relationships | Suppliers, vendors, and their distributors | Distributors, wholesalers, retailers, end customers |
Processes | Sourcing, procurement, materials handling, putaway | Inventory management, order fulfillment, shipping |
Activity | Raw materials or goods coming in from suppliers | Finished products going out to customers |
Strategic Imperative | Obtaining goods or materials the company needs to make its products | Meeting customer demand, supporting the sales process to generate revenue |
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