Inbound logistics is where purchased inputs (raw materials) are delivered and planed to support uninterrupted production. Because of importance inbound logistics play in any production it is very important that your logistics provider have capacity to support your production, deliver your materials and be in contact with external companies such as suppliers. How to choose right logistics provider?
Inbound logistics also includes sourcing the materials, tracking inventory and optimizing the movement of goods from suppliers to the store, warehouse or manufacturing plant. This is the first stage in the supply chain.
Importance of Inbound Logistics
An effective inbound logistics can result in higher quality products, more cost savings and increased sales. It will also improve customer satisfaction, while also reducing total overhead and wasted materials.
If you're in control of the inbound logistics process, you'll be able to secure better freight rates, which will ensure greater accuracy over inventory management. Every dollar allocated to product storage, transportation and management will be invested wisely, which will help increase your return on investment in the long run.
Inbound logistics being the first stage in the supply chain it impacts all of the processes. You might even be forced to stop production if inbound logistics is not handled properly. Delays in sourcing new materials or on time delivery of materials for production leads to delayed production of goods sold to your customer, which leads to unhappy customers and revenue loss. Despite the importance of inbound logistics, many companies overlook this process. They often focus more on customer service and other key aspects of outbound logistics and less on inbound logistics and manufacturing. Choose experienced logistics partner for your inbound logistics needs.