July 30, 2023
Logistics in all its core is an essential part of a business and its supply chain, with constant optimizations needed to be done in effort to maintain a well-balanced supply chain between production and demands. In doing so, a suitable logistics system needs to be implemented in your business which generally includes the base logistics process such as inbound and outbound process. Although these two processes go hand-in-hand with each other in logistics, this article will be more focused on explaining the definition, process, and ways to optimize one’s outbound logistics.
Outbound logistics are also an integral part of business focused on the demand side of the supply-demand equation. Outbound, like inbound logistics, must be managed properly to achieve profit and a great client experience. This is because inbound logistics is important before and during the production process of logistics, whereas outbound logistics occurs after the product has been completed and ready to be shipped. However, what is specifically included in the outbound logistics process, what are the common steps of outbound, and what can you do to optimize your business through outbound logistics?
If you want to learn more regarding the Inbound Process of Logistics, you can access the following article below: Definition and Comprehensive Guide of Inbound Logistics
In defining outbound logistics, it can be understood as a process that generally includes moving inventory out of storage, fulfilling orders, and delivery of the goods to customers or to the end receiver/company. Although order confirmation, fulfillment (including picking and packing), shipping, last-mile delivery, customer service, and troubleshooting are also considered as outbound. So, in simple terms, outbound is the outflow of goods which encompasses order processing and consolidation, as well as product packaging, dispatch, and transportation, which are all done to ensure that products arrive at their destination in the correct quantities and at the right time.
In this process, outbound mainly concerns maintaining the quantity of products to meet demands, and storing/organizing these goods with the most suitable conditions. In managing Warehouse and Inventory, we can maintain stocks accurately with demands while maintaining product quality from potential damages, theft, obsolescence, or spoiling. Although in this process, inbound and outbound logistics may overlap with the main difference being that outbound deals with outgoing finished products and order fulfillment.
When customers place an order, then the next step is done which is through processing and order confirmation. This usually is done by an order management system and then the order will be passed through to the warehouse/inventory team to help the fulfillment process.
After the order is confirmed, the next step is to pick out, check, label, and pack the goods while updating the current available stocks as according to the physical product. The types of packing material is chosen based on the size, number, and unique qualities of the products while each box also has a shipping label on the outside that includes the order reference number, destination address, and, on occasion, a tracking number. The label also includes a barcode that, when scanned, provides access to the information associated with the shipment, ensuring product traceability throughout transport..
This phase entails deciding on modes and methods of delivering the items based on their category or type of goods. Heavy machinery, for example, may arrive in small order numbers via truck while products like fresh flowers, may need to be sent by plane in chilled containers. On-time delivery is also vital to successful fulfillment orders, as are the correct items and quantities in the customer's purchase. The package's traceability is also vital to avoid the merchandise being lost or damaged in transit.
Outbound logistics also may include addressing customer difficulties/issues that they encounter since it includes any process linked to getting orders to customers. Your company should be prepared to connect with clients and handle concerns related to order data, fulfillment, or delivery as soon as possible.
As with optimizing inbound processes, outbound should also be researched in finding out the current system weaknesses/flaws to understand how to develop your business logistics as best as possible. You should also maintain your connections with all stakeholders since this is critical for optimal outbound logistics optimization. Incorporating tech-enabled platforms into your company processes, such as outbound logistics software or outbound logistics apps is also necessary since the adoption of technology is required to better aid order conformations, delivery route planning and pick delivery networks. Furthermore, it can automate the maintenance of delivery schedules, as well as, most crucially, cut delivery costs as much as possible. Further in-depth research is definitely needed to further develop your logistics since it may differ according to your business and how current logistics are run.
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