09/07/2023
Insta Transpure Group
Different Types of Logistics:-
Logistics is a complex service enabling the product to reach the right consumer. From the source of origin to order fulfillment, different types of logistics and aspects of logistics combine to make order fulfillment possible. Some of the major types of logistics with examples are discussed below for your reference:
> Inbound Logistics
Inbound logistics is the process of executing the transportation between the companies and their suppliers (learn more about vendor management system). This area focuses on ensuring that the other departments or manufacturers have the necessary raw materials and supplies. Usually, a wide network and large trucks help companies transport goods at a lesser cost. An example would be receiving inventory products into your company's warehouse directly from the manufacturer.
> Outbound Logistics
Outbound logistics can also be referred to as order fulfillment mainly because outbound logistics involves delivering goods to the customers. It focuses on moving the goods from one supply chain to another, like manufacturers to warehouses and warehouses to customers. A significant type of logistics is that it plays a vital role in building a good relationship with customers.
> Reverse Logistics
One of the most complex and lesser-known types of logistics benefiting consumers is reverse logistics. It primarily deals with the returns. The reverse logistics supply chain involves procuring goods from the end-users and transferring them back to the source/ manufacturer/ warehouse. It is meant for products damaged in the delivery process or eligible for repairing, refurbishing, or recycling.
> Third Party Logistics (3PL Logistics)
Third Party Logistics 3pl is the outsourcing of other operational logistics companies to carry out the company's logistics services. In 3PL logistics, all the logistics activities, including inventory management, warehousing, transportation, and delivery, are handled by a third party. Hence, the company gets to focus on other aspects of the business. For example, Amazon has outsourced its inventory management.
> Fourth Party Logistics (4PL)
Companies use a fourth party or 4PL logistics to outsource their logistics operations to a single partner. The 4PL provider is responsible for managing the entire supply chain, including assessment, designing, building, controlling, and tracking supply chain solutions for their client.
> Green Logistics
Green logistics or eco-logistics is the curating and executing sustainable policies and measures to reduce the environmental impact caused by the logistics operation or services. It aims to achieve sustainable environmental, cultural, economic, and social advantages and reduce the impact caused by different types. For example, using eco-friendly packaging, reusing the returned products, reducing the number of packages, etc.
