Inbound Logistics
Also known as: Inbound Supply Chain, Procurement Logistics, Supply-Side Logistics
Definition
Inbound logistics refers to all the processes involved in bringing materials, goods, and supplies into a business. It covers everything from sourcing and purchasing to receiving and storage, forming the supply side of the supply chain.
Inbound vs. Outbound Logistics
| Aspect | Inbound | Outbound |
|---|---|---|
| Direction | Into the business | Out to customers |
| Focus | Raw materials, supplies | Finished goods |
| Partners | Suppliers, vendors | Customers, retailers |
| Goal | Efficient supply | Efficient delivery |
Inbound Logistics Activities
Sourcing & Purchasing
- Supplier identification
- Price negotiation
- Order placement
- Purchase order management
Transportation
- Carrier selection
- Freight management
- Route optimization
- Shipment tracking
Receiving
- Dock scheduling
- Unloading
- Inspection and QC
- Documentation
Storage
- Put-away
- Inventory management
- Stock rotation
- Space optimization
Key Inbound Metrics
| Metric | Description | Target |
|---|---|---|
| Supplier on-time | % of POs delivered on time | 95%+ |
| Receiving accuracy | % received correctly | 99%+ |
| Dock-to-stock | Time from arrival to available | <24 hours |
| Inbound freight cost | Cost as % of goods value | Varies |
| Damage rate | % of inbound shipments damaged | <1% |
Inbound Logistics Strategies
Vendor Managed Inventory (VMI)
Supplier monitors and replenishes inventory
Just-in-Time (JIT)
Materials arrive exactly when needed
Milk Run
Single truck collects from multiple suppliers
Consolidation
Combine shipments at intermediary point
Optimizing Inbound Logistics
- Supplier relationships - Collaborative planning
- Visibility - Track inbound shipments
- Scheduling - Coordinate arrivals
- Routing - Optimize pickup routes
- Compliance - Clear supplier requirements
- Technology - ASN, EDI, TMS integration
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