Logistics is a process of arranging goods where they are required and when they are required. There are many types of logistics as explained below:
Inbound logistics is inward flow of tools, equipments, materials, work in progress and finished goods from suppliers to the manufacturers or assembly units or warehouses set up by an organization. It involves transportation, receiving, storage and distribution of goods for production or further use.
It is the process under which finished goods are transported to the warehouses or distributors to be supplied to the ultimate consumer. As compared to inbound logistics, in outbound logistics generally finished products are transported out from the organization.
It involves all activities starting from short-listing of supplier, negotiation, order processing and receiving material at the minimum possible cost. It includes activities such as market research, suppliers’ management and executing outsourcing contract with the transporter or warehouse company as per the requirement.
Production logistics is a process of ensuring that each machine and work points get sufficient raw material supply so that work may not stop. Here is not only making available the material is important but also to ensure that value addition happens through reduction of cost by eliminating nonproductive operations. The effort is made to reduce the batch size of the machine as small as possible so that even an individual customer is served within shortest possible time.
There is always a gap between place, time or quantity of material required by the customer and the supplies available with retailers and wholesalers. Hence, it is imperative to ensure timely delivery of finished stock at the doorstep of distributors. It is ensured by people or parties taking care of distribution logistics of the firm.
It means ensuring supplies at the time of emergency. The organization must put in place an alternative plan to procure and transport material in the emergency circumstances. Preparing for future exigencies saves firm from extra ordinary losses and keep it competitive for the long term.
Reverse logistics is a process that involves all the activities that lead to flow of goods from customers through the distributors to the manufacturer or suppliers in case of recall, return, repair, reuse, recycle, refusal or disposal of material.
Green logistics involves all those logistics activities which reduce the adverse impact on environment. The basic purpose of any logistic activity is to reduce cost of transfer of goods and services from the point of origin to the point of destination.