What is Inbound Logistics? Everything You Need To Know

At Eleets 3PL, we know that the logistics and supply chain fields are evolving quickly. There's a lot to keep track of, so a new term like “inbound logistics” might throw you off at first, but learning about it is really important if you're concerned about running your business as well as you can. Let's take a closer look at inbound logistics and how a good program helps businesses large and small.

What is It?

What is inbound logistics? Many people know of outbound logistics, which consists of sending product out to customers. This is incredibly important, but a proper inbound logistics program that properly tracks everything coming IN to the business is also needed. Businesses receive the raw materials that they need to create their products. They need to properly track and store these materials. They also need a good way to buy materials and schedule deliveries. This is where a proper inbound logistics program shines.

Benefits

Naturally, a focus on inbound logistics can make a big difference, whether your business is large or small. Let's see how the typical company can benefit from a well-oiled inbound logistics program.

Better Inventory Visibility

A good inbound logistics plan makes it easier to manage your inventory. You have better visibility of everything that's coming in. You see shipments coming in and you know you'll be able to get products out to your customers without delay or overstocking. That brings us to our next point.

More Knowledge About Delays

An inbound logistics program makes it easier to learn about delays quickly. No matter how good you and your suppliers are, delays can happen. The key is to make sure that they have a minimal effect on how your business runs. Weather, customers, and so many other factors can affect your freight movements. Make sure that you know about them, and that you can reach out to customers to let them know about problems. Delays aren't great, but uncertainty is a far greater annoyance for your customers. They'll appreciate the heads up.

Less Overstock

Because you have a better view of everything coming into your warehouse, you're less likely to make an ordering mistake that results in overstock. Having extra raw materials on hand may not seem like a bad idea or might seem like it's being prepared, but having too much overstock materials can take up crucial space and increase warehousing costs. Knowing more about what you have on hand can prevent costly errors.

Higher Levels of Customer Satisfaction

Your inbound logistics program can also lead to increased customer satisfaction. As we mentioned, you know about delays earlier and can get advanced notice to your customers. Open lines of communication are always appreciated. You'll also have better management of your products and raw materials, resulting in more on-time deliveries, less chance of damage, and other mutual benefits that can keep your customers coming back to you, instead of a competitor.

A proper inbound logistics program can also result in cost savings, which you pass on to your customers. Lower costs, better reliability, and better communication? As a customer, what's not to like about that? If your business needs a hand with its inbound logistics, contact the experts at Eleets 3PL. We’ll create a custom solution tailored to your needs.

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