Inbound and Outbound Logistics: Processes, Differences and How to Optimize

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

ATTRIBUTEINBOUND LOGISTICSOUTBOUND LOGISTICS
DirectionInwardOutward
FocusSupplyDemand
RoleReceivingDelivery
Key RelationshipsSuppliers, vendors, and their distributorsDistributors, wholesalers, retailers, end customers
ProcessesSourcing, procurement, materials handling, putawayInventory management, order fulfillment, shipping
ActivityRaw materials or goods coming in from suppliersFinished products going out to customers
Strategic ImperativeObtaining goods or materials the company needs to make its productsMeeting customer demand, supporting the sales process to generate revenue

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