Logistics refers to the coordination and processes involved in moving resources from one place to another. The resources can include materials, people, equipment, and inventory. There is often a mix of resources being moved and how management is involved.

Depending on the size of the business, and the scope of the product or service offering, logistics can be a very complex process with specific departments created to manage it.

Without appropriate resources and logistics management, challenges will appear. For smaller businesses, unable to allocate a budget for logistics, a logistics manager (or the business owner) will need to oversee this process.

Inbound Logistics

This is one of the primary processes of logistics, it focuses on purchasing resources – usually, materials, parts and inventory which requires finishing. These resources are then moved from supplier to warehouse, assembly plants or retail outlets. Inbound logistics focuses on bringing raw materials together for assembly prior to sale such as car parts that are delivered to an automotive plant for assembly.

Outbound Logistics

This can relate to either the movement of a final product to a retail outlet or to a storage facility e.g., warehousing. Once the product is off the production line, the outbound logistics process works on ensuring that it reaches the end-user.

Logistics or Supply Chain Management

Logistics forms part of the supply chain but the terms are not interchangeable. Supply chain management handles the flow of goods and services, from raw manufacturing right through to consumer delivery. This is carried out by several different suppliers who are used at each stage of the process. These suppliers are the links in the supply chain. If one ‘link’ breaks, there can be a major disruption to the overall process.

If you’re interested in finding out more about how you can get your foot in the door, or develop professionally in this exciting industry, then have a look at our logistics course!