GOOD QUESTION | What are the characteristics of a great supply chain? - Inbound Logistics (2024)

FAQs

GOOD QUESTION | What are the characteristics of a great supply chain? - Inbound Logistics? ›

The characteristics of a good supply chain are visibility, optimization, having the lowest cost possible, timeliness, and consistency.

Inbound logistics is the way materials and other goods are brought into a company. This process includes the steps to order, receive, store, transport and manage incoming supplies. Inbound logistics focuses on the supply part of the supply-demand equation.

The activities associated with inbound logistics are receiving, storing and disseminating inputs to the product. Examples: material handling, warehousing, inventory control, vehicle scheduling and returns to suppliers.

Inbound and outbound logistics aim to accomplish different things. The purpose of inbound logistics is to secure supply for a business, while the purpose of outbound logistics is to meet and fulfill demand. Inbound and outbound logistics processes also move and deliver different goods to different parties.

An efficient inbound logistics can make a business manufacture high-quality products, save big on the various costs, and drive sales. It also contributes to minimizing the wastage of material and ensuring the right production.

The inbound logistics process includes the inflow of raw materials from different suppliers to the manufacturing plant of the business. It can include activities such as sourcing of raw materials, storage and delivery of materials that would be utilized in the production process, and also includes tracking inventory.

The five most critical phases of SCM are planning, sourcing, production, distribution, and returns. A supply chain manager is tasked with controlling and reducing costs and avoiding supply shortages.

What are the Three C's of the Supply Chain? The three C's of the supply chain are Communication, Collaboration, and Change Management.

How do you make inbound logistics? ›

In simple words, procurement is about managing inflow of products such as raw material while logistics generally deals with outflow and distribution of the finished product.

Inbound logistics in the Netflix value chain are related to receiving, storing, and disseminating the inputs of the products.

Inbound logistics includes basically the parts of Receiving Raw Materials, Storing the Received & Distributing it for the Production. Most critical part of inbound logistics which can be affected to the value adding process would be receiving raw materials.

Maintaining address accuracy, delivering the package, ensuring the delivered products are in good condition, and maintaining transparency with the consumer are all fundamental in delivering a good final outcome in the outbound logistics process. This requires attention to detail in entering each order without error.

Some examples of inbound logistics in action include: Manufacturing: In the manufacturing industry, inbound logistics involves receiving and storing raw materials needed for production. This may include metals, plastics, and other components used to create finished products.

Outbound logistics is the process of storing, transporting, and delivering your goods to their end customers. In other words, it's all about how your business moves finished inventory out of your supply chain – and fulfills customers' orders.

Simply put, logistics includes three main categories: inbound, outbound, and reverse logistics. Each of these categories has characteristics and processes, and businesses must understand them to operate successfully.

Inbound logistics and procurement are two critical components of supply chain management that can make or break a business. Inbound logistics refers to the process of managing the movement of goods from suppliers to warehouses, while procurement is the act of acquiring goods and services for use in production.