What is Inbound Logistics? Detailed answers from AZ

x Businesses, online business shops want to optimize the supply chain to reduce costs, improve product quality and customer service, so need to learn about Inbound Logistics?
X You want to know how important Inbound Logistics plays an important role for every business?
x The shops have not distinguished Inbound Logistics from Outbound Logistics and the operating process of Inbound Logistics?

Proship.vn we will help you understand what the term Inbound Logistics is, Inbound Logistics plays an important role, how the operating process of Inbound Logistics takes place, ... along with challenges and factors affecting Inbound Logistics.

What is Inbound Logistics?

What is Inbound Logistics? Inbound Logistics is a logistics input or material supply is the process of controlling raw materials or semi -finished products from manufacturers or suppliers.

What is Inbound Logistics? Detailed answers from AZ
Inbound logistics (input) is the process of transporting, storing, delivery and receipt of goods to a business, also known as the supply logistics.

Inbound Logistics as the starting stage in the supply chain and is an important period that determines the operating status of the later stages. So, this is a quite complicated stage, need to be careful from the beginning.

All knowledge needs to know about Inbound Logistics

What Inbound Logistics is answered above. Next is the other knowledge to know about Inbound Logistics inputs:

The importance of Inbound Logistics

Input logistics brings many important benefits such as:

  • Save input costs:
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Good management of Inbound Logistics helps the shop negotiate with good prices with suppliers, optimizing shipping costs, storage and minimizing the cost of input materials.

  • Increase flexibility and response ability:

Effective input logistics helps the shop take the initiative in supplying materials, quickly responding to production and fluctuations of the market.

  • Product quality is improved:

Logistics input ensures quality supply of raw materials, meeting production requirements, contributing to creating high quality final product.

  • Optimize warehouse usage space:

Planning and managing Inbound Logistics Science helps shop owners arrange and store reasonable materials, optimize warehouse space and minimize waste.

Factors affecting Inbound Logistics

Inbound Logistics is affected by many factors such as:

  • Raw material characteristics:

The core attributes of raw materials such as size, volume, easy -to -damage, frequency of use, and value will determine the method of transportation, storage and order frequency.

  • Conditions for infrastructure, logistics services:

The development of transport infrastructure, warehouse system as well as the quality of external logistics service providers will facilitate or hinder Inbound Logistics.

  • Relationship with suppliers:

The reliability, stability and response of the supplier affects the quality, price and time of material supply.

  • Inbound Logistics team capacity:

Professional qualifications, management skills, creative thinking and the ability to handle the problem of personnel making Inbound Logistics greatly affect this activity results.

  • Technology application level:

Equipping advanced technology solutions in order management, inventory monitoring, shipping coordination will help increase the accuracy, efficiency and quickly of Inbound Logistics.

Challenges, optimization of Inbound Logistics

The challenges encountered by logistics input:

  • The supplier has a problem that cannot supply raw materials:

You need to diversify the supply, sign a tight contract, forecast accurate needs and closely monitor the supplier's operation to reduce the risk of interruption.

  • Delayed shipping risk:
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In order for the goods to be shipped on time and safely, choose a reputable shipping partner, track the roadmap closely, choose the appropriate shipping method.

  • Management operation lacks accuracy and errors: 

In order for the work to manage quickly, the shop should invest in applying management software, standardize processes and inventory periodically. Thereby supporting improving management efficiency, reducing errors, increasing accuracy in Inbound Logistics.

  • Difficult with warehouse system:

Warehouse is a difficult problem for small and medium shops. If you are not able to own a private warehouse, the shop should use the warehouse service from third parties to ensure the best storage conditions.

  • Returned goods:

Business shops need to carefully control the quality of inputs, carefully packed, provide accurate product information, develop reasonable return policies and analyze the cause of the goods.

What is Inbound Logistics? Detailed answers from AZ
The role of logistics input is very important, but there are also the accompanying challenges that businesses and business shops need to understand to apply effectively between Inbound Logistics and Outbound Logistics.

The difference between Inbound Logistics and Outbound Logistics

What is the difference between Outbound Logistics and Inbound Logistics? That is:

Criteria Input logistics

(Inbound Logistics)

Logistics output

(Outbound Logistics)

Implementation process Is the process of searching, purchasing, transporting and delivering materials, tools, ... to the warehouse, factory, production facility or retail store. Is the process of planning, carrying out the distribution of goods to the final consumer.
Relationship Between raw materials suppliers and factories, manufacturing companies. Between the manufacturing company and the final consumer.
Optimal Just in time Expense
Mainly Purchasing, storing and distributing materials to the production site. Packing and distributing goods to the final consumer.

How is the Inbound Logistics operating process?

The operation process of Inbound Logistics takes place as follows:

Step 1: Search for materials supplier

Investigate and report potential supplier information. Proceed to receive quotes, agreements, classification and management of suppliers.

Step 2: Buy

Once the appropriate unit has been selected, businesses will order essential materials. At the same time, notify the purchase time so that the production process does not affect and take place continuously.

Step 3: Transport of goods

Enterprises consider choosing the form of transportation, delivery speed and signing a price contract with the roadmap with the carrier.

Step 4: Receive and process goods

Receive goods at the location of agreement, loading and unloading goods down to the yard and checking the number of orders.

What is Inbound Logistics? Detailed answers from AZ
Description of the operating process of Inbound Logistics is done step by step.

Step 5: Warehouse and archive

Transporting materials to storage or handing over to the goods.

Step 6: Inventory management

Managing goods/raw materials before delivering to customers or serving production. Goods must be placed in the right position and preserved under general conventions.

Step 7: Distribution of goods

Raw materials from the warehouse are distributed to production parts or retail points on demand. The distribution should be implemented promptly and in the right quantity and locations for production and business activities to be continuous.

Step 8: Perform reverse logistics

Reverse logistics is the process of managing the process of goods from consumers back to the shop. In the Inbound Logistics, the reverse logistics includes the handling of goods returned due to errors, recovery of packaging, boxes for reuse, ...

What is Inbound Logistics and all knowledge related to logistics inputs has been conveyed by Proship. Participants in the supply chain of products and goods can apply the input logistics model so optimally and effectively. We are currently the Bonded Warehouse bonded warehouse rental unit, the service of transporting sea, rail, road, ... Contact 0909 344 247 for advice and best quotes.

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