Three Types of Logistics Explained: Inbound, Outbound, Reverse

Inbound, Outbound, and Reverse Logistics ExplainedWhen 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.

ArrayINSTANT QUOTEArrayLive Chat 24/7

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. So, what are the differences with these types of supply chain directions, and how can Transportify help you with them? 

Inbound Logistics: Explained

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 processes such as fuels, 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 a variety of 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. 

How can we help: Transportify can help you with setting up your inbound logistics in the Philippines. If you are expanding your clients’ network and wish to transport your goods safely, 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: 

Column 1Column 2Column 3Column 4
Vehicle TypeCargo DimensionCapacityBase Price
IsEconomy (Sedan/Hatchback)L: 3.5 ft
W: 2 ft
H: 2.5 ft
200 kg₱190
IsEconomy Extra Space (SUV/MPV)L: 5 ft
W: 3.2 ft
H: 2.8 ft
300 kg₱240
IsL300/VanL: 7 ft
W: 4 ft
H: 4 ft
1000 kg₱470
Pickup TruckL: 10 ft
W: 6 ft
H: Open
2000 kg₱1850
Pickup Truck Extra SpaceL: 14 ft
W: 6 ft
H: Open
2000 kg₱2250
4W Closed VanClosed Van (4W)L: 10 ft
W: 5 ft
H: 5.5 ft
2000 kg₱1950
6W Closed VanClosed Van Extra Space (6W)L: 14 ft
W: 6 ft
H: 6 ft
2000 kg₱2350
Long Pickup TruckL: 21 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₱8000
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
3000 kg₱1500

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, our company could help you practice improved customer satisfaction and logistics network integration. These services are meant to help growing companies and businesses develop their own logistics value chain and result in higher quality products, more cost savings, and increased sales across its logistics network. 

Outbound Logistics: Explained

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. Your packages and boxes are guaranteed to arrive at their destination within the requested time frame. 

Reverse Logistics: Explained

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). 

So, 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 in place 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 fleet can handle your parcels’ retrieval process or packages from your customers, which can ease the burden from your end.

How to improve your Logistics Network flow

If you are in charge of the inbound logistics process, you should secure a reduced carrier rate to ensure accuracy on inventory management. Every amount invested wisely on the improvement of logistics will help with the company’s ROI in the long run. 

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, companies 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. 

Conclusion

Again, Inbound Logistics refers to the movement of goods between businesses and their suppliers. While Outbound Logistics pertains to the flow of goods between companies and the end-user/consumer. And, Reverse Logistics means that the movement of products from the end-user/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 the movement of products 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 that can 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 company offering services to handle these logistic needs, 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.

scroll

I'm a customer

I'm a driver

Learn More