Outbound Logistics

Sending anything from a company/ factory to other place is known as outbound logistics.

Dispatching finished products/goods from company's warehouse, transport the goods and deliver at customer's storage area comes under Outbound logistics.

If you want to say it in formal way, you can describe it as: Storing & transporting finished products from a factory & delivering/ distributing it to customers is known as outbound logistics.

Process: Once production is completed the finished good will be shifted to warehouse for proper storage. Buyer/ customer will share Purchase order, supplier also can prepare sales contract. After that payment will be processed as per advance agreed payment term, warehouse will provide the date of loading and will arrange loading on that date. transport team will place vehicles, warehouse will load the goods on vehicles and ultimately goods will be offloaded at customer's premises as per agreed delivery terms.
In case of ex-works orders seller will keep the goods ready at their loading point and buyer will pick the goods from there. In this case seller will provide ex-factory date which can be referred as  readiness date, byer will place vehicle on or after ex-factory date, pick up the goods and transport it to their premises at their cost.

Factors which needs attention in inbound logistics:

1) Proper packing of goods to prevent from damage during transportation.
2) Maintain transit time
3) Choose a good transporter & keep the track of the vehicle
4) Maintain proper documentation (Hand over proper documents to the transporter/driver)
5) Be ready with your reverse logistics arrangements

  

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