Product and material logistics allow a company to conduct its business, plain and simple. Often, without these processes in place, a business cannot function at all.
Managing inbound and outbound logistics usually takes an entire team or department, but working with an experienced transportation company can help you save yourself time, money, and stress.
Read on to learn about the basics of inbound and outbound logistics to get an idea of the challenges presented by both.
Inbound vs. Outbound Logistics: What’s the Big Idea?
Inbound logistics refers to the process of ordering and supplying raw materials to make products. This includes sourcing, ordering, transporting and storing raw materials, tracking inventory, and efficiently moving products from the source to your own facility.
This process is generally referred to as a business-to-business transaction (B2B).
Outbound logistics, on the other hand, refers to the process of shipping out the end product from the facility to the customer. This process can include customer service, packaging shipments, and distribution channels. This process is referred to as a business-to-customer transaction (B2C) because it involves delivering a product to a customer from your facility.
The Challenges of Inbound and Outbound Logistics
Because of the unique aspects of both steps in the transportation of goods between businesses and customers, both inbound and outbound logistics present their own challenges.
Inbound Logistics Pitfalls
- Lack of information — not knowing the exact location of an incoming shipment, overordering or underordering of supplies, and not knowing how much shipping will cost.
- Trucking traffic jams — improper planning and foresight, confusion in the truck yard, clogged traffic in the yard, and inconsistencies in peak times leading to staffing irregularities.
- Supply, demand, and suppliers — economic volatility, shortages of raw goods, seasonal goods, and competitive influences all affect the prices and availability of raw materials.
Outbound Logistics Headaches
- Inventory Management — balancing the storage of an inventory of raw goods and already made products.
- Fluctuating customers — scaling delivery and shipping needs to meet customer demands or lack thereof.
- Space invaders — holding enough inventory to meet the ever-changing customer demand while making sure that the company isn’t storing too much.
Both inbound and outbound logistics present major opportunities to both save and waste a lot of your company’s resources, time, and effort.
Using warehouse analytics, management software, and the help of logistics consultants are just a few ways companies can keep on track. For more information or help with your current logistics needs, reach out to the team at your McAllen logistics company.
Let Us Take Your Business Where It Needs To Go
The fact is, a company that has a well-coordinated supply chain and logistics team is far more likely to be a successful company. The benefits include important aspects of a thriving business, like brand reputation, saving time, reducing expenses, and meeting customer demands. However, coordinating trucks and keeping track of the inventory ordered or the products shipped can be overwhelming for those without the necessary experience or workforce.
To make sure your customers are always happy and your materials are always on time, reach out to the team at Lean Cargo Transportation, LLC, to learn more about how we can help.