Types Of Logistics In 3 Minutes

Types Of Logistics In 3 Minutes

The different Main Types of Logistics :

Inbound Logistics:-
Inbound logistics refers to the internal logistics tasks and activities that businesses need to complete in order to operate. Inbound logistics usually refers to the logistical operations of companies that operate fairly upstream (B2B).
In terms of the supply chain, it involves the relationship with parties that operate further upstream than the given business. Depending on the business, the parties that operate upstream may vary dramatically in their respective operations.
For example, consider being a car manufacturer. The manufacturer’s inbound logistics would entail the sourcing of raw material inputs (sheet metal, glass, wiring, plastics, etc.), how to store the materials in preparation for and during the assembly process, and how to manage the flow of manufactured automobiles that leave the factory.
From the perspective of an upstream player, for example, the metal foundry that produces the sheet metal, the inbound logistics would vary. The inbound operations would include sourcing raw materials such as metal ores, storing and using the materials in production, and managing the flow of completed products.

02. Outbound Logistics:-
Outbound logistics refer to the tasks and activities involved with moving the product to the end user. Such logistic duties usually apply to players that operate relatively downstream, which are usually the last party in the supply chain. The duties include the storage of manufactured inventory, the transportation of manufactured goods to the point of sale, and sometimes, the shipping and handling involved to get certain products to the end user.
Going back to the auto manufacturer example, the parties involved with the outbound logistics of that supply chain would be the wholesalers and dealers. The factory operations would be in charge of assuring that the right amount of ordered inventory arrives at the dealer at a given time.
In turn, the dealer would be in charge of coordinating the storage and upkeep of the vehicles on its lots, as well as the shipping and handling of vehicles that are ordered by customers that live in faraway areas.

03. Third party logistics:-

Third-party logistics can be very confusing for business owners. Logistics includes all parts of the supply chain that plan, implement, and control the flow of goods and services to meet customer requirements.
Third-party logistics mean that a third-party business is used to outsource logistic services. These services can include all activities that involve management and the various ways an enterprise moves resources from one location to another.
These logistic services can include operations, transportation, warehousing, production, and much more. Third-party logistic contractors are indispensable to many businesses, with 80 percent of Fortune 500 companies using third-party logistics contractors.

04. Fourth-party logistics:-

A 4PL is a fourth-party logistics provider and it essentially takes third-party logistics a step further by managing resources, technology, infrastructure, and even manage external 3PLs to design, build and provide supply chain solutions for businesses.
4PL services typically encompass 3PL services as well as:
Logistics strategy, Analytics including transportation spend, analysis, capacity utilization, and carrier performance, Freight sourcing strategies, Network analysis and design, Consultancy, Business planning, Change management, Project management, Control tower and network management services, coordinating a wide supplier base across many modes and geographies, Inventory planning and management· Inbound, outbound and reverse logistics management
4PL examples:-
FILBERT LOGISTICS LTD provides 4PL services that go above and beyond traditional 3PL by offering strategic business insights and consultative services in addition to logistics execution.

05. Distribution logistics :

Distribution logistics (also known as transport logistics or sales logistics) is the link between production and the market. The area comprises all processes involved in the distribution of goods - from manufacturing companies to customers. Customers are either final customers, distributors or processors

06. REVERSE LOGISTICS

Reverse logistics of the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. Hence the name reverse logistics.

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