STUDENTS' CORNER - 108

In this session, we will deal with Inbound logistics.

A goods coming into a business is inbound logistics and outbound logistics refers to goods going out of business. Both the types of logistics fall within the field of supply-chain management.

It is generally said that inbound logistics somehow has failed to attract great attention in logistics management; this is to say that outbound logistics has commanded more focus and consideration. This aspect of difference between the two kinds of logistics can be rather understood in a way. In inbound logistics, goods have reached you; you know for certain how much you have got and how much you may need or may not need even and you also know all the related relevant details like cost involved and transport used maintaining all the time the schedule for inbound logistics. But in outbound logistics, this element of certainty is largely absent; prospects and promise, reflecting hope, cannot be mistaken for achieved performance. In other words, your goods have not yet reached your customers in time and this element of rather uncertain state of affairs naturally demands and also gets immediate and focused attention.

Here, the managers of the company shoulder a very heavy responsibility. Obviously, without an efficient network of performing stakeholders, no business can be managed for long and it is true for both inbound and outbound logistics. You have to receive your things properly in shape so that you can manufacture and send your goods in time and in good shape to your customers who are very valuable assets for you.

This boils down to one huge fact: your stakeholders meaning your suppliers, your transporters, your distributors, your marketing personnel and of course your customers must be reliable. Indeed, customers’ reliability, a golden base for any surviving business, cannot be commanded but only be deserved. To win their reliability, your goods must never fail to reach them under any circumstances. And to achieve this indisputable goal, your other stakeholders must be reliable. Reliability points to integral fusion of promise and performance, generally.  Let us give some room to what is called the Acts of God. If promise does not mature into performance sometimes due to natural disasters, it should not heavily dent into the question of reliability between the stakeholders. It is clear from this picture that managers must see to it that the network of business parties is strong and sustained. If it is thus reliable, logistics, be it inbound and outbound, will be a welcome enterprise.

We will see some more of inbound logistics in our next session.