Could you just think, without logistics, where would we all be? Let us turn back time a couple of decades ago. How was the logistics sector? If you were getting a parcel from home, it took days to reach you, the courier companies closed at 5 ‘o’clock, and government holidays meant you had to live without the parcel for a few more days. Logistics is not the same anymore, is it? Your courier reaches you at any cost, irrespective of the time and day. How did this tremendous change happen? We could say partly that the internet brought it into the picture.
It could also be because of the developing logistics companies and departments, right?
Read this post with us as we navigate into learning what is logistics, and the different forms it comes in.
What is Logistics?
Logistics is the process of planning, implementing and controlling the effective flow of goods, services and associated information from the point of origin to the point of consumption to meet customer needs.
It does not limit itself to one kind of function alone, such as shipping, last-mile delivery, and more. It starts with procurement and ends with last-mile delivery.
If you are learning about logistics, it is best to learn about the different kinds of logistics as a whole.
Get ready as we understand the various types logistics and how they work worldwide!
Types of Logistics
The different forms of logistics are listed here for you:
1. Inbound Logistics
In order for an item or product to be delivered, it first has to be produced. Inbound logistics is the initiator of the production process management and flow in a company’s supply chain. In order for a product to be created, raw materials, the inside flow of supplies, and much more are needed. Inbound logistics ensures that raw materials and other supplies are flowed to a company during its production phase. It manages warehousing and delivers raw materials effectively to a business. Inbound logistics is the source of supplier collaborations, inventory management, centralised receiving, and technology integration.
2. Outbound Logistics
Outbound logistics is another crucial element for a business, just like inbound logistics. Outbound logistics withholds the parts where a company has to deliver its products to the final customer. In outbound logistics, there are elements like packaging, loading, delivering, storing, and more. This is when the curated products reach the customer’s hand.
3. Procurement Logistics
You can call procurement logistics another part of inbound logistics. However, this part of logistics solely is based on the supplies being taken to the business. The supplies such as inventory and raw materials. This form of logistics also handles how many raw items are delivered, in what frequency they are delivered, selection of vendors, the kinds of packaging required, the mode of transport and much more.
4. Distribution Logistics
Distribution logistics can also be called sales logistics. This part of logistics deals only with the movement of goods from the manufacturer to the customer. It could either be the final customer or the distributor. It is the driving force of order fulfilment services. Online courses in supply chain management will make sure that the professional learns more about the procedures and methods to run the entire supply chain.
5. Manufacturing Logistics
Manufacturing logistics involves the planning, services, and coordination tasks needed to ensure production activities in a manufacturing plant. It organises and manages the transportation and storage of materials and finished products in a manufacturing plant. It also involves deciding when to shut down the plant for maintenance and meeting production and inventory needs.
6. Reverse Logistics
Reverse logistics might seem like a tricky term, but it is not. It is linked to the procedure of managing product returns and refunds. Modern-day has us with easy returns and refunds; reverse logistics is the route it takes. The returned products would typically be received late, denied because they were damaged, or even out of customer satisfaction. These products would either be eligible for refurbishing, repair or recycling. It would help the business dispose of the product and also minimise penalties for non-compliance.
Conclusion
Now that you have a grasp of logistics’ role and the different kinds of logistics out there, you can understand its working module and how a product actually reaches your doorstep.