Three Types of Logistics Explained: Inbound, Outbound, Reverse

Inbound, Outbound, and Reverse Logistics Explained

When referring to logistics flows, we are talking about the movement and direction of certain goods, parcels, packages, items, or information within a supply chain network. More specifically, between the point at which the products or information originated and the final consumption point.

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Three main directions correspond with the three logistical processes which we are going to focus on today. These are inbound logistics, outbound logistics, and reverse logistics. The information about these three supply chain directions is essential to know, especially to people inclined in the logistics industry in the Philippines. So, what are the differences between these types of supply chain directions, and how can Transportify help you with them?

What is Inbound Logistics?

When talking about inbound logistics, we refer to the movement, storage, and transportation of various products and information from the suppliers, through the warehouse, and further through production facilities of manufacturers for processing and production.

The types of goods or items that are transported through this logistics flow are raw materials. Some could be tools for manufacturing or consumable products needed for fuel or various spare parts and components for production inputs. Better Inbound Logistics management makes the cycle more efficient and integrative. An excellent way to manage inbound logistics is to use automatic ordering or order-fulfillment systems. With this, you can be sure that it will directly impact the organization’s success.

For example, if you produce car parts in a factory, you will use inbound logistics to send your car parts on to various recipients depending on the nature of your relationship with those businesses. This could be providing car parts to manufacturers who use them in their finished products or merely passing them onto retailers and distributors. Most car parts distributors use large trucks in transporting these products, so it is essential to choose the right partner for these logistics services.

How can we help: Transportify can help you with setting up your inbound logistics in the Philippines. If you are expanding your network and wish to transport your goods safely with large trucks efficiently and cost-effectively, you will need a reliable third-party logistics company to assist you. Refer to our table to do a quick look at our services:

Vehicle TypeCargo DimensionCapacityBase Price
Vehicle TypeCargo DimensionCapacityBase Price
IsEconomy (Sedan/Hatchback)L: 3.5 ft
W: 2 ft
H: 2.5 ft
200 kg₱130
IsEconomy Extra Space (SUV/MPV)L: 5 ft
W: 3.2 ft
H: 2.8 ft
300 kg₱150
IsL300/VanL: 7 ft
W: 4 ft
H: 4 ft
1000 kg₱440
Pickup TruckL: 10 ft
W: 6 ft
H: Open
2000 kg₱1950
Pickup Truck Extra SpaceL: 14 ft
W: 6 ft
H: Open
2000 kg₱2350
4W Closed VanClosed Van (4W)L: 10 ft
W: 6 ft
H: 6 ft
2000 kg₱1885
6W Closed VanClosed Van Extra Space (6W)L: 14 ft
W: 6 ft
H: 6 ft
2000 kg₱2185
Long Pickup TruckL: 18 ft
W: 6 ft
H: Open
7000 kg₱4850
Vehicle 10 Wheeler Wing Van Icon10-W Wing VanL: 32 ft
W: 7.8 ft
H: 7.8 ft
15000 kg₱7500
reefer truck with decalReefer TruckL: 14 ft
W: 6 ft
H: 6 ft
2000 kg₱2700
Mini Dump TruckL: 10 ft
W: 6 ft
H: Open
3500 kg₱1500
6w Fwd TruckL: 18 ft
W: 6 ft
H: 7 ft
7000 kg₱4850

Inbound logistics is the first step in the logistics value chain. So it is essential to have an improved process flow when it comes to logistics because it can impact your network’s remaining processes.

For effective inbound logistics, Transportify could help you practice improved customer satisfaction and logistics network integration by providing the best quality delivery services especially if big trucks like 6w Forward truck, Long Pickup truck, and 10W Wing Vans. These bulk delivery services are meant to help growing companies and businesses develop their own logistics value chain, resulting in higher quality products, more cost savings, and increased sales across its logistics network.

What is Outbound Logistics?

Outbound logistics is the movement of finished products or any other items and information moving from production facilities to the next supply chain link. These goods move through warehouses, further to the point of consumption (in the hands of end-users). This is often referred to as the order fulfillment process.

Using the same example above, after the manufactured car parts made their way through the inbound logistics flow to a retailer, they will then be sold and distributed to the end-user, thus moving through the outbound logistics flow to reach the desired final destination.

All of the products are intended for the end-users to move through this outbound logistics flow. In a nutshell, the outbound logistics movement refers to businesses ship and deliver their products from the warehouse to the customer (whereas inbound refers to the change between companies and their suppliers).

How we can help: Transportify is well-versed in outbound logistics in the Philippines, with a vast network of drivers dedicated to moving your goods & products to the end-user. One of the main benefits of using our services is that you can track & trace your assets in real-time as they move from your warehousing facilities into the end-user hands. This will enable you to offer accurate ETA’s and update customers in real-time if in the event of traffic or weather-related delays.

Businesses undergo numerous stages in their outbound logistics process. On-time performance is the key to achieve the best outbound logistics process. In line with that, our company offers same-day delivery across our fleet depending on your booking location. Your packages and boxes are guaranteed to arrive at their destination within the requested time frame.

What is Reverse Logistics?

As you may have already guessed, reverse logistics refers to the movement of items or goods from the end-users back through the supply chain to the appropriate party concerned. This occurs in the event of returns or with products that may need servicing or repairs, refurbishing, resale, recycling, recovering, or for proper disposal (in the fact a product cannot be recycled due to certain elements and must be broken down safely and appropriately).

This flow encompasses all of the activities carried out after the point of sale or the end product life cycle. This process is most common in the automobile and electronics industry.

Again, using the same car parts example that we have been rolling with, a specific part may be faulty when fitted into a consumer’s vehicle. This part will need to be sent back to the manufacturer for replacement or repair—this will move through the reverse logistics flow.

How we can help: It is essential to have a system to account for any items that may need recovering from the end-user for whatever reason that may be. To offer the best possible customer service, you need to provide your users with the “path of least resistance.” This means, rather than having them go out of their way to return the items in question to you, you should send a third-party logistics driver to collect the items from them instead. This means that they won’t have to leave their own home’s comfort, which is especially important if the items are being returned because they are faulty or unsatisfactory.

Transportify can be your partner in reverse logistics. Our large fleet can handle your parcels’ retrieval process or packages from your customers, which can ease the burden from your end. This is a big help, especially to businesses like appliance and furniture suppliers that require large vehicles in their reverse logistics process.

If you are interested in exploring our logistics services, you may download our app by scanning the QR code or clicking the buttons below:

Three Types QRorDownload Transportify Icons

How to Improve Inbound, Outbound, and Reverse Logistics Process?

To improve your inbound, outbound,  and reverse logistics process, your company should be able to ensure that your 3PL partner can offer wide variety of services that will fit your current strategies and will help with long term goals of your business.

If you are in charge of the inbound logistics process, you should secure a reduced carrier rate to ensure inventory management accuracy. Every amount invested wisely in the improvement of logistics will help with its ROI in the long run. Ensure that your third party logistics (3PL) partner can offer a wide variety of vehicles that you can use in different inbound delivery requirements.

If you are in charge of the outbound logistics process, you should establish different metrics to give your company insights on operational performance and strategies, such as the outbound logistics strategy. By merely evaluating the company’s return on various operations, you can recognize which the business should give services or procedure emphasis.

If you are in charge of the reverse logistics process, you should plan and execute strategies to manage products beyond the final sale, such as repair, warranty recovery, redistribution, value recovery, and end-of-life recycling. As a proactive approach, companies may establish a separate reverse supply chain to address product retrieval concerns.

Logistics network flow will make a big difference in the branding of the company. If you have a reliable 3PL provider like Transportify, your distribution network flow will surely provide convenience and increased visibility in each process and ultimately give your business an excellent image to your customers.

Conclusion

To summarize, Inbound Logistics refers to the movement of goods between businesses and their suppliers. In contrast, Outbound Logistics pertains to the flow of goods between companies and the end-user or consumer. And Reverse Logistics means that products’ movement from the end-user or consumer back to the manufacturer for repairs, recycling, refurbishing, etc.

Frequently Asked Questions:

What is the difference between Inbound, Outbound, and Reverse Logistics?

💡 Inbound Logistics refers to the movement of goods between businesses and their suppliers to cut the definition short. In contrast, Outbound Logistics pertains to the flow of goods between companies and the end-user/consumer. And Reverse Logistics means that products’ movement from the end-user/consumer back to the manufacturer or reverse supply chain. Transport and logistics companies, such as Transportify, can be the best fleet partner to handle these three types of logistical flow depending on the business’s needs.

What are the available fleet partners that can handle Inbound, Outbound, and Reverse Logistics?

💡 Supply Chain companies are anywhere in the Philippines. Some of these companies are now present on the internet or social networking sites. But if you are looking for the best tech-logistic third-party logistics provider offering services to handle these logistic needs, especially with bulk delivery, you might want to consider using Transportify for your business needs. The variety of their fleet from 4-wheeled vehicles to 6 wheeler trucks for heavier loads will fit every aspect of your business needs.

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