Professional Documents
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01 Subject- Logistics
Inbound Logistics
Inbound Logistics involve Purchasing, Transportation, Warehousing, Material Handling, Transportation, Warehousing, Material Handling, Inventory Management and control. Inventory Management and control. Inbound logistics is the management of goods and materials which are arriving at your business premises. It is the opposite of outbound (or 'despatch') logistics. For example, in a tomato canning plant, inbound logistics is concerned with the receipt and storage of empty cans and raw tomatoes, which arrive separately. Outbound logistics is concerned with the storage of canned tomatoes (the finished product) and dispatched to customers. The activities of receiving, storing, and
disseminating incoming goods or material for use is called inbound logistics.
Steps in Inbound Logisticsy y y y y y y Enter Purchase order Transportation Planning Select Transportation Service Provider Tender Shipment and initiate Event Manager to track tendering process Respond to Tender Deliver shipment Goods Receipt
y y y
Proof of Delivery Self billing to Transportation Service Provider Invoice verification & Payment to the Supplier
Outbound Logistics
Movement of material associated with storing, transporting, and distribution a firm's goods to its customers. It covers the necessary activities for preparation and shipping of goods to their destination. Outbound logistics is important because of the costs involved and because managing the outbound system well make it easier to achieve and sustain market share. Inbound and outbound systems share some common activities, such as transportation, inventory, warehousing, and materials handling. However, like inbound systems, outbound systems have some activities that are unique or deserve special emphasis, such as customer service and channels of distribution. It also has to take care about the safety of the goods while transporting them from the manufacturing unit to the retailers or the final consumers. Outbound Logistics helps in1) Timely delivery 2) Meeting customer demand with perfection. 3) Balance between supply and demand. 4) Transport safety
Reverse Logistics
Reverse logistics stands for all operations related to the reuse of products and materials. It is "the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics. The reverse logistics process includes the management and the sale of surplus as well as returned equipment and machines from the hardware leasing business. Normally, logistics deal with events that bring the product towards the customer. In the case of reverse, the resource goes at least one step back in the supply chain. For instance, goods move from the customer to the distributor or to the manufacturer. Returns can affect every channel member from consumers, retailers and wholesalers to manufacturers. Returns are caused for different reasons depending on who initiates them end consumer, wholesaler or retailer and manufacturer and on the nature of the materials involved packaging or products. Reusable packaging is becoming more and more common, especially in Europe where manufacturers are required to take back packaging materials.