What Is Outbound Logistics?
Outbound logistics focusses heavily on storing and transporting finished products, and begins when a customer places an order. Before delivering the order to the customer, the business packs the items in its warehouse. It must optimise distribution items, uphold a practical inventory stocking system and choose the correct distribution channels to run the outbound logistics process efficiently.
What Are The Key Stages Involved In The Outbound Logistics?
Here are the key stages involved in the outbound logistics process:
Scanning Orders
The orders are first scanned to avoid potential errors or redundancies and ensure the right orders are sent in the appropriate quantity. Before the orders are set out for delivery, end consumers can usually edit their orders by removing, adding or replacing items.
A strong order validation process helps receive timely notifications about changes in any order and offers a chance to act accordingly.
Restocking
Once an order is received, businesses replenish their stock to prepare for future deliveries by:
- Transporting available items from a secondary storage facility to the primary location
- Making new products to move fresh stock into the warehouse
Maintaining adequate quantities of stock reduces the possibility of production or delivery delays.
Final Checks
Businesses ensure the products meet all the quality standards and are intact and well-functioning between the production and the final shipping stage. The products are labelled and packed before onboarding them for shipment.
Shipping
The process of getting the shipment delivered to the intended location can be recorded by the business to respond to customer queries or feedback if required.
How Does Outbound Logistics Differ From Inbound Logistics?
| Basis For Comparison | Inbound Logistics | Outbound Logistics |
| Meaning | The influx of raw material and parts from suppliers to the manufacturing plant | The outward movement of final goods from the business to the end user |
| Interaction | Between supplier and the business | Between business and customers |
| Related To | Material management and procurement | Customer service and channel of distribution |
| Focus | Deployment of resources and raw materials within the manufacturing plant | Movement of finished product from the business to the final consumer |
What Are The Benefits Of Having An Efficient Outbound Logistics System?
Here are some of the benefits of having an efficient outbound logistics system:
Accurate Customer Service
Businesses can gain direct visibility into their operations through logistics systems. They can then customise services according to customer demand, enhancing customer satisfaction.
Cost Saving
Routing multiple orders at once and streamlining output processes can help cut down shipping costs. Automated pick-pack-ship systems are ideal.
Improved Quality of Service
Businesses can monitor the shipment status in real time with tracking technologies such as GPS devices. This can immensely improve customer satisfaction.
What Are The Advantages Of Using A Third-Party Logistics (3PL) Provider For Outbound Logistics?
Cost Savings
Businesses can slash overall operational expenses by leveraging the 3PL’s economies of scale, established network and technology. They can then focus their resources on core competencies, such as marketing and product development.
Faster Delivery
Giants such as Amazon and Walmart have made faster deliveries a norm, forcing other players to follow suit. Most 3PLs specialise in shipping services, which ensures timely delivery of orders using their delivery fleets. Besides, most 3PLs have warehouses across India, facilitating swift delivery.
Customisation and Personalisation
Customisation and personalisation are key factors that can set a business apart. 3PLs can help create personalised packaging for special orders or print customised shipping labels.
End-To-End Warehouse Management
From procuring products from manufacturers to shipping them to consumers, 3PLs offer end-to-end warehouse management services. 3PLs ship the products from the nearest warehouse to the destination as soon as a customer places an order. This results in faster deliveries by relieving the burden of inventory management.
What Are The Disadvantages Of Using A Third-Party Logistics (3PL) Provider For Outbound Logistics?
Loss Of Control
By hiring a 3PL provider, businesses may struggle to maintain the same level of oversight responsiveness as in-house logistics operations.
Over-Dependence On External Partners
Business operations can be directly impacted if the 3PL partner faces any issues or disruptions, such as delays, quality concerns or system failures.
Hidden Costs
Additional fees for special services, custom requirements, and changes in volume can accumulate, eroding the initially perceived cost benefits. To ward off unexpected financial surprises, transparent and detailed contracts are essential.
