Many companies take the help of logistics companies to operate smoothly and expand their customer base. These companies usually offer two types of logistics services: inbound logistics and outbound logistics. Inbound logistics mainly deals with sourcing, expediting and receiving raw materials that are delivered to the company. In contrast, outbound logistics includes warehousing, packaging and transporting products from the company to its end users. 

Simply put, logistics service providers manage the movement of materials, information and other resources from one business to another or from a business to the end user. For example, a company wants to purchase raw materials for making their final products and later send them to customers. The logistics company will then be responsible for all the processes including delivering products to customers on time. Logistics management determines the procurement, storage and transportation of goods and materials to their ultimate destination. Here we will focus on the difference between inbound logistics and outbound logistics. 

What are Inbound Logistics?

Inbound logistics involve activities such as acquiring, storing, sourcing and delivering raw materials to the company from other companies. Whenever a company needs some raw materials to manufacture final products, inbound logistics helps deliver these products. Simply put, inbound logistics mainly focuses on buying and scheduling the inflow of materials, tools and final goods from suppliers to the production unit, warehouse or retail store.

Inbound logistics helps companies acquire all the goods that are to be delivered to their customers whenever companies need to deliver them. Furthermore, it includes stock control, inspection, materials handling and transport, etc. to assist in goods distribution to the end users.

What are Outbound Logistics? 

Outbound logistics services are a process of collecting, storing and distributing the final products and related information flows, from the company to the customers. It encompasses several activities such as selecting, organising, transporting, etc. These processes are involved in the outflow of products from businesses to their customers.  

Outbound logistics helps businesses by managing several aspects such as warehousing, material handling, inspection and transport. This ensures their delivery operations remain unaffected during peak demands. 

Difference Between Inbound and Outbound Logistics

There are lots of differences between inbound logistics and outbound. Both play a quite different role in ensuring businesses operate smoothly. Inbound logistics helps import materials into a company. Whereas outbound logistics helps export goods and products to customers. The primary focus of both these logistics remains on transporting products from point A to point B. The following are the primary differences between both of them.

  • Inbound Logistics is the process of buying, storing and distributing products with the company. For example, when a company wants to buy raw materials from somewhere else for manufacturing final products, inbound logistics helps the company transport and store these raw materials. On the other hand, outbound logistics services refer to the process of selecting, packaging and transporting products to the customers. For instance, if customers order products from certain businesses, outbound logistics need to deliver such products from business to customers. For this, they help businesses package, handle and transport products to the end users. 
  • The second major difference between Inbound logistics and Outbound logistics is that inbound logistics is all about sourcing and receiving materials and handling their management smoothly inside the company. Whereas, outbound logistics helps businesses run and operate efficiently. For the same, outbound logistics uses several methods such as providing transportation and delivering products to customers, leading to improved customer satisfaction. 
  • The third major difference between them is that the inbound logistics mainly provide support at the time when companies decide to use resources and raw materials to make final products. While outbound logistics services focus on delivering the final products to customers by providing vehicles and other assistance to businesses.
  • In inbound logistics, when any interaction takes place, it involves the supplier and the company to decide the final results. But in outbound logistics, mainly the interaction takes place between the company and the final customers to finalise their deals.

Conclusion

Logistics services play an important role in managing the supply chain management, helping businesses deliver products and materials to the end user on time. It assists businesses to reach their customers easily. Both inbound and outbound logistics have distinguished characteristics and methodologies to support businesses.  As a business owner, if you are looking to take logistics service from a logistics expert, handover (handover Karo, Khush Raho), with impressive delivery services in Noida, Ghaziabad, Delhi, Kanpur, Mumbai and Bangalore and many more places, can be your best choice. If you want our logistics service with immediate effects, contact us now!