Inbound Logistics

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Logistics ASSIGNMENT Sujal Shah TYBMS A-57

Transcript of Inbound Logistics

Page 1: Inbound Logistics

ASSIGNMENT

Sujal Shah

TYBMSA-57

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Inbound logistics

Inbound logistics is the management of goods and materials which are arriving at your business premises. It is the opposite of outbound (or 'despatch') logistics. For example, in a tomato canning plant, inbound logistics is concerned with the receipt and storage of empty cans and raw tomatoes, which arrive separately. Outbound logistics is concerned with the storage of canned tomatoes (the finished product) and despatch to customers.

Objectives of Inbound Logistics Ensure that material received and related information are processed

and made available promptly to production, store and other department.

Completely and accurately document goods received and goods returned.

Accept only items that were properly ordered. Accept only materials that meet purchase order specification. Safeguard goods received. Ensure that vendor, inventory and purchase order information is

accurately updated to reflect receipt. Return rejected items promptly. Completely and accurately document all transfer to and from storage. Properly transfer all materials requisitioned. Maintain safe working conditions and storage of hazardous materials.

Benefits of Inbound Logistics are:- Reduced Transportation cost. Improved inbound in-transit visibility. Improved efficiencies in handling goods receipts. Improved communication with all parties involved. More efficient collaboration with logistics service providers. Improved communication with all parties involved. Improved dock efficiencies through consolidated pick up processes.

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Outbound Logistics

Outbound Logistics is the part of the supply chain process, such as custom assembly or private labeling that moves, stores, and adds value to goods on the way to their final destination. It sits between supply-side processes such as purchasing and materials. It is basically movement of material associated with storing, transporting, and distribution a firm's goods to its customers.

Benefits of Outbound Logistics:- Timely delivery.

Meeting customer demand with perfection.

Balance between supply and demand.

Process of Outbound Logistics:-

Goods IssueThe outbound delivery forms the basis for goods issue posting. The data required for goods issue posting is copied from the outbound delivery into the goods issue document

Delivery Processing & DistributionControls the actual fulfillment of sales orders and purchase orders as well as stock transport orders. The execution of logistics tasks is handled here.

Proof of DeliveryProof of delivery (POD) is an instrument involved in business processes in which an invoice is issued only after the customer has confirmed the delivery's arrival. In addition to the POD itself, you can also record the POD date, time, actual quantity, and the reason for possible differences in quantities.

Value-Added ServicesValue-Add activities in the warehouses need to be managed and monitored. Using the VAS functionality, you are able to manage and control the execution of services in the warehouse.

Delivery MonitorProvides an overview of deliveries in working processes. Gives an overview of the workload in different areas, for example shipping, transportation, or invoicing, while allowing you to collectively process documents that have the same selection criteria.

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Reverse Logistics

Reverse logistics moves product from the point of consumption to the point of origin to recapture value or ensures proper disposal. A critical area of the supply chain is reverse logistics. Traditionally defined as the process of moving product from its point of consumption through channel members to the point of origin to recapture value or ensure proper disposal. Reverse logistics includes activities to avoid returns, to reduce materials in the forward system so that fewer materials flow back and to ensure the possible reuse and recycling of materials. Returns can affect every channel member from consumers, retailers and wholesalers to manufacturers. Returns are caused for different reasons depending on who initiates them - end consumer, wholesaler or retailer and manufacturer - and on the nature of the materials involved - packaging or products. Reusable packaging is becoming more and more common, especially in Europe where manufacturers are required to take back packaging materials.

The reasons for returning products can be distinguished by where the returns initiated.

Customer not satisfied. Installation or usage problems. Warranty claims. Faulty order processing. End of product life cycle or product replacement. Manufacture recall programs. Other complications.

Four key steps in the Returns process:-

Local Screening. Collection. Sorting. Disposition.