Comparison Chart
| Basis for Comparison | Inbound Logistics | Outbound Logistics |
|---|---|---|
| Meaning | The influx of raw material and parts, from suppliers to the manufacturing plant, is known as inbound logistics. | The outward movement of final goods, from the company to the end user, is known as outbound logistics. |
| Related to | Material management and procurement | Customer service and channel of distribution |
| Focuses on | Deployment of resources and raw materials, within the manufacturing plant. | Movement of finished goods or product from the business to final customer. |
| Interaction | Between supplier and the firm | Between firm and customers |
Definition of Inbound Logistics
Inbound logistics connotes the activities which are related to sourcing, acquiring, storing and delivering the raw materials and parts to the product or service department. It is part and parcel of the operations, for a firm involved in manufacturing business.
In simple terms, inbound logistics is the fundamental activity, which 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 includes all those activities, which are substantial to make the goods available for operational processes, at the time of their need. It encompasses materials handling, stock control, inspection and transport, etc. to facilitate, the production or market distribution.
Definition of Outbound Logistics
Outbound logistics, as the name suggests, is the collection, storage and distribution of the final goods and related information flows, from the manufacturing plant to the end user. It covers all those activities (i.e. selecting, organising, transporting, etc.) which are involved in the outflow of merchandise from seller to the buyer.
Outbound logistics, in the case of a tangible item, can be warehousing, material handling, inspection and transport, etc., but for intangible ones like services, it is associated with setting for bringing customers to the service location.
Key Differences Between Inbound Logistics and Outbound Logistics
The primary differences between inbound logistics and outbound logistics are given hereunder:
- Inbound Logistics refers to the buying, storage and dissemination, of the incoming goods, to the production unit. On the contrary, outbound logistics implies the transmission, selection, packaging and transportation of final goods to the consumers.
- Inbound logistics, is all about sourcing and receiving of material and its management, in the organisation. Conversely, outbound logistics is mainly concerned with the customer service and distribution channels.
- The inbound logistics is oriented towards utilisation of resources and raw materials, within the manufacturing or assembly plant. As against this, outbound logistics stresses on the outflow of finished goods or product from the firm to the final consumer.
- In inbound logistics, the interaction takes place between the supplier and the company. Unlike outbound logistics, in which the interaction is between the company and the ultimate consumer.
