Logistics Outbound Activities
Logistics are the ways in which raw materials are transformed into manufactured goods and then transported to the end consumer. Effective logistics ensures that there is a consistent and efficient train of goods and services that travel from point to point. This avoids shortages and ensures that customers are satisfied.
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Definition
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Outbound logistics focuses on getting products to consumers. Businesses must have established routes for transporting products, employees who transport these products, and the necessary equipment needed to move products.
Documentation
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Businesses must document all outbound activities. When sending products from the warehouse to the distribution channels, businesses must deduct the shipped quantity from the warehouse. The business must update the serial number status. Space available in the delivery vehicle must be deducted. Once the shipment arrives, the deliverer must confirm that the shipment has arrived.
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Route Management
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Logistics managers must determine the route that the delivery vehicles travel. In most cases, logistics will remain the same. But sometimes, traffic or road construction can force delivery vehicles to take alternative routes. The shipment either reaches the customer or reaches a location where products are consolidated for a larger shipment. The customer can be either a retailer or a direct consumer.
Proof of Delivery
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The customer performs inventory and uses a proof of delivery instrument to confirm that all of the shipment has arrived. In some cases, the shipment might be damaged or stolen. All data must be collected and analyzed.
Globalization
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Outbound logistics have played a major role in globalization and outsourcing. Some companies take certain raw materials mined in one part of the world, ship these parts to another part of the world to be manufactured as parts, are sent to another place for assembly, and are then sent to the final place where the product is sold. Outbound logistics not only focuses on physically transferring products to new consumers, but also focuses on marketing products to new groups of consumers, such as marketing to overseas customers with more disposable income.
Distribution Centers
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During outbound logistics, distribution centers might perform light manufacturing on the products. For example, distribution centers might place price stickers on products to lower the prices or they might add additional labels to the products. Some distribution centers even assemble or package the products (reference 3).
Retailers can have too many or not enough products, leading to shortages or surpluses. Therefore, products must sometimes be stored in warehouses temporarily both to ensure that the business has enough supplies and to also have a place to store excess products. Storage can become more challenging when products are perishable because businesses must ship the freshest products and must dispose of products that have an approaching expiration date (reference 3).
E-Commerce
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E-commerce has lead to more efficient outbound logistics. Businesses can distribute electronic products instantly. Also, businesses can ship products directly to consumers through third parties. Businesses can more rapidly respond to changing demand, since they have customers that they know need products.
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References
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