Logistical processes play a key role in the functioning of online stores and e-commerce platforms. Whether you are running a small business or a large multinational enterprise, it is significant to be aware of the logistical operations and functions. It would make a huge difference in the success and growth of your business. Today, we’ll discuss outbound logistics activities; their definition, activities involved in the outbound logistics process; advantages and disadvantages.
What is Outbound Logistics?
Before jumping into the discussion of outbound logistics activities, it is significant to discuss its definition. Outbound logistics is the method of delivering and moving products and goods to the end consumers. It comprises all the activities and processes focusing on order processing, fulfillment of orders, and completing customer order delivery.
Some of the main types of delivery channels in outbound logistics are as follows;
It comprises of not only decreasing the cost but also satisfying the customer expectations with transparency and speed. They often are complementary and go hand-in-hand. However, Route planning software efficiently performs deliveries; organizes packages by routes, takes the best course and routes relevant to traffic, tracks fuel consumption, and allocates routes to drivers.
The last mile delivery is expensive and an inefficient area of delivery. The last mile delivery and logistics comprises of services like packaged delivery through a common carrier or grocery delivery from the local store to home. However, every delivery needs separate individual management because it goes to a single address.
Outbound Logistics Activities
Let’s discuss the outbound logistics activities; they are as follows;
Storage and Warehousing
Businesses and companies need to maintain a specific level of inventory to fulfill orders and satisfy customer demands. In this stage of outbound logistics, companies need to organize and secure their products and goods in safe and secure conditions. It is significant to mention here that warehousing is the common area of inbound and outbound logistics.
However, the focus of outbound logistics is to deal with finished products and products. Some companies directly sell finished goods after receiving them from suppliers and vendors. In short, outbound logistics focuses on fulfilling customer orders and sending products directly to the customers.
Inventory management software helps you to find the best place to store goods in the warehouse to quickly fulfill customer orders and perform order picking and packing operations. The objective of inventory management is order accuracy, inventory, and maintaining product quality by avoiding spoilage, obsolescence, theft, and damage.
The medium of transportation and shipment is different for different types of products and goods. For instance, massive products like bulky machinery would require shipment in small order quantities by trucks. Temperature-sensitive and perishable items would require transportation by airplane or refrigeration.
Timely delivery plays a key role in the growth and success of the company. It is significant to correctly record the customer orders in terms of quantity and items; it would make sure that the package won’t become lost.
A distribution channel is the method through which your product reaches the customers. It comprises two categories; direct or indirect. The method of distribution could be drop shipping, omnichannel, dual distribution, deal network, value-added reseller, or direct to consumers. While selecting the distribution channel, you should keep in mind the following;
- Customer satisfaction
Advantages of Outbound Logistics Activities
Some of the main benefits and advantages of outbound logistics activities are as follows;
Loyalty & Customer Satisfaction
Time, speedy, and error-free delivery would improve customer satisfaction. The satisfied customers would likely place repetitive orders; they would spread word-of-mouth marketing for their friends and relatives. In order to retain customers, it is important to maintain their satisfaction and happiness level.
Well-optimized logistical processes would result in the form of speedy and quick delivery of goods and products. Some companies receive payment on delivery or after delivery. If the company quickly delivers the product, it will quickly receive revenue and profitability.
Last-mile delivery is usually the expensive method in the outbound logistics. If the company manages to achieve efficiency in this area, then it would have a significant impact on the end result and bottom line.
Disadvantages of Outbound Logistics
Some of the main challenges of outbound logistics activities are as follows;
In order to achieve efficiency, it is significant to have visibility and transparency of their outbound logistical processes and activities. It could be highly difficult and challenging if the data is in different systems or in areas that aren’t accessible.
High Customer Expectation
Customer expectations have increased significantly in terms of cost, quality, speed, and timing. In fact, Amazon turned off its two-day guaranteed delivery service; many customers want their delivery within a day. It is difficult for companies to keep up with customer expectations.
Speed & Cost
Speedy shipment service would cost you more resources when it comes to delivering products and goods to customers. If customers are willing to pay more the quick and speedy services, then the decision would be easy. Otherwise, they should include the delivery cost in the overall price of the product to protect their margin.
Conclusion: Outbound Logistics Activities
After an in-depth study of the outbound logistics activities; we have realized that outbound logistics plays a key role in improving customer satisfaction level. If you are learning about the activities involved in the outbound logistics process; then you should keep in mind the abovementioned process, benefits, and challenges.
Ahsan is an accomplished researcher and has a deep insight in worldly life affairs. He goes Live 3 days a week on various social media platforms. Other than research writing, he’s a very interesting person.