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Types of Logistics Explained

Types of Logistics Explained

 

The logistics industry can be quite complex with the many different types of logistics services available, the most well known type being sales, or the movement of goods from producer to consumer. 

Logistics generally refers to the flow of goods between a producer, of items or raw materials, and the consumer but it also refers to the reverse process of this too. Here we look at the different kinds of logistics services and their uses.  

 

Inbound Logistics

Inbound Logistics is the movement of goods or products from the suppliers to a warehouse where it is then transferred on to its next step in the journey. The term ‘Inbound Logistics’ mainly refers to the transference of goods between companies and suppliers. It is also seen as the first step within the supply chain and so efficiency is of the utmost importance to ensure no delays from the offset. 

 

Outbound Logistics

The process of Outbound Logistics is often referred to as order fulfilment as it is the point at which goods move through warehousing or fulfilment centres to then be forwarded to the final destination also known as the consumption point or the consumer.

Products shipped under Outbound Logistics are intended for the end user, and the process allows businesses to ship their products from the warehouse directly to their customers. 

 

Reverse Logistics

As the name suggests, Reverse Logistics refers to the movement of goods from end -users back through the supply chain. This occurs when the customer requires a return or replacement of a products for various reasons such as damage, exchange, repair, error or simply a change of mind.

 

Third-Party Logistics (3PL)

Third-party logistics (3PL) is commonly the outsourcing of eCommerce logistics to a third party logistics company. Outsourcing this process means businesses will have the benefit of the company’s knowledge and expertise to make the process cost effective and efficient. The third party company will handle a number of processes from inventory management to picking and packing.

These are the main types of logistics which are carried out by specialist companies, who help businesses to meet demand and shipping requirements of their customers.

If you have a company who requires the transportation of products to customers, then selecting the right logistics partner can really help you to diversify and grow your company. At Regional Express we are experts in logistics and can help you meet rising demands on your company. Find out more about what we can do for you here: https://www.regionalexpress.co.uk/freight-forwarding/