What is Logistics?

Logistics is the coordination and management of the flow of resources between the point of
origin and the point of consumption in order to meet the needs of customers or clients. The
purchase, transfer, and storage of products and services are all included in this process. There are
different types of logistics that you will learn about in this blog post.

The Role of Logistics

Planning, implementing, and controlling the efficient, effective forward and reverse flow and
storage of goods, services, and associated information between the point of origin and the point
of consumption in order to satisfy customer needs is the responsibility of logistics management,
a component of supply chain management.

Getting everything done in the supply chain as effectively and efficiently as possible is the core
objective of logistics management. All facets of the supply chain must be considered by logistics
management in order to accomplish this goal, including transportation, inventory, general
warehousing, materials handling, cargo packaging, security, documentation, and information
systems. To guarantee that the finished product satisfies the customer’s needs in terms of quality,
quantity, and timeliness, each of these components must be meticulously planned and
coordinated.

Different Types of Logistics

There are many different types of logistics, and the one utilized will depend on the sector and the
particular requirements of the business. The following are the main common logistics is sales
logistics that moves products from the producer to the consumer. In addition, there are a number
of other types of logistics, such as procurement logistics which is the flow of raw materials and
parts, production logistics which is the flow of materials inside a factory or business, recovery
logistics which is the return flow of returns from consumers and waste, and recycling logistics
which is the flow of recyclable materials. This section describes the types and fields of logistics
in depth.

Inbound Logistics

Bringing products and supplies into a business is referred to as inbound logistics and is the first
of many different types of logistics. To do this, all incoming supplies must be received, stored,
and handled. A company’s bottom line may be significantly impacted by inbound logistics,
which is a crucial component of any organization that relies on tangible commodities. Customer
satisfaction can be raised and expenditures can be decreased with effective inbound logistics
management.
There are various forms of inbound logistics, each with their own special opportunities and
challenges. These are the most typical forms of incoming logistics:

Import logistics: Bringing different commodities and supplies into the company from outside

the country is what inbound logistics entail. This procedure could be challenging since it calls for
adherence to laws and rules pertaining to customs.

Inventory management: The storage and tracking of incoming products is another

responsibility of inbound logistics. Due to the need for an efficient inventory
management system, this can be difficult.

Warehousing: The storage of incoming commodities must be coordinated with inbound

logistics. This can be difficult because a strong warehousing system is needed.

Transportation: Transporting incoming commodities must be coordinated with inbound

logistics as well. This can be difficult because a good transit system is needed.

Outbound Logistics

Outbound logistics is the movement of products or finished goods from the production centers to
the next supply chain link, and this can be done via various shipping methods, such as air, land,
or sea. Outbound logistics is the second type of logistics among different types of logistics.
Following that, the products are transported from the warehouse to the point of consumption or
the clients. In light of this, order fulfillment is another name for outbound logistics.

Logistics Fields

Logistics can be split into five types by field: procurement logistics, production logistics, sales
logistics, recovery logistics, and recycling logistics. Each of these is explained in detail, but first
we should learn about logistics fields and types. For recovery logistics and recycling logistics,
both types are the same up to the recovery of goods from consumers, but recycling logistics is
the type that recycles the goods that are collected.
Procurement Logistics: Procuring Raw Materials and Parts

Procurement logistics is the flow of goods when the raw materials and parts necessary for
manufacturing are procured from suppliers. This field did not attract much attention before, but
now that small-lot production of a variety of models is the main type of production, many firms
are actively pursuing production by procuring the necessary materials in only the necessary
amounts at the necessary times (the shift to just-in-time production) because it is directly
connected to reducing inventory costs.

Production Logistics: Materials Management, Distribution in Factories, Product

Management, Shipping

Production logistics is the flow of goods that includes the management of procured parts and
materials, distribution inside a factory, product management, packaging, and shipping to
warehouse. Delivery management, warehouse dispatch management, and shipping management
can be optimized and the state of delivery vehicles can be managed by smoothly linking
procurement logistics and sales logistics described later.

Sales Logistics: Delivery from Warehouse to Wholesalers, Retailers, and Consumers

Logistics typically refers to sales logistics. In the past this was mainly delivery from delivery
centers and logistics warehouses to distribution points such as wholesalers and retailers. But now
direct delivery also makes up a large amount of this volume due to online shopping and e-
commerce. Whether delivery through delivery centers and logistics warehouses or direct delivery
from production sites, higher efficiency in transportation and delivery and shrinking inventory
are indispensable for delivering the necessary goods to the necessary people in the necessary
quantities at the necessary time. This also contributes to improving customer satisfaction.

Recovery Logistics: Recovering and Recycling Products, Containers, and Packaging

If the flow of goods from production to consumption by procurement logistics, production

logistics, and sales logistics is described using the circulatory system of the body, it would be
said to be forward logistics. On the other hand, recovery logistics or reverse logistics is the flow
that recovers and recycles products, containers, and packaging that have fulfilled their role.
Similar to recycling logistics described later, emphasis is being placed on this flow in recycling-
oriented societies.

Recycling Logistics: Recovering and Recycling Recyclable Products and Containers

Typical examples of recycling logistics are recovering and recycling empty cans, plastic bottles,
and old paper. Containers, packaging, old computers, and inkjet cartridges can also be recovered
and recycled in the same manner. The importance of recycling logistics has been increasing in
recent years as measures for the environment and to effectively utilize materials such as minor
metals.

Third Party Logistics (3PL)

A business that outsources logistics services to clients is known as a third party logistics provider
(3PL). 3PLs provide a range of services, including shipping, warehousing, and logistics
management. In the supply chain for many organizations, 3PLs are important. They could result
in cheaper logistics costs and greater efficiency. On occasion, 3PLs could provide access to new
markets and talents. 3PLs come in a variety of forms. Some companies specialize in just one
service, like shipping or warehousing. Some companies offer the whole spectrum of logistics
services. There are 3PLs all over the world. While some are local service providers, others have
a global reach.

Fourth Party Logistics (4PL)

4PL or fourth-party logistics is used by companies to outsource all of their logistics operations to
a single logistics partner. The logistics provider would be in charge of overseeing every aspect of
the client’s supply chain, including evaluation, design, construction, management, and tracking.
For this reason, a 4PL logistics partner signifies for the client a greater level of supply chain
management.

Green Logistics

Green logistics refers to logistical operations that have a positive effect on the environment and
is the last option of different types of logistics. This covers practices like recycling, utilizing
renewable energy sources, and minimizing emissions. The use of green logistics techniques has
numerous advantages. One benefit is that it might lessen the negative effects of your company on
the environment. By lowering your energy bills over time, it can help you save money. Finally, it
can aid in building a supply chain that is more effective and sustainable.