Introduction

Logistics refers to the process of coordination and movement (forward and reverse) of
resources from the point of origin to the point of consumption in the supply chain. The term
“logistics” can be traced back to Roman and Greek times, referring to the movement of
equipment and supplies to troops in the field. Logistics is a crucial component of supply chain
management and involves planning, transporting, and storing goods.

The global logistics market is projected to reach USD 12,975.64 billion by 2027, registering a
CAGR of 6.5% from 2020 to 2027. Factors such as the booming e-commerce industry, reverse
logistics, last mile logistics, rise in tech-driven logistics services, and increased global trade
have contributed to this industry's growth. Supply chain management courses offer in-depth
knowledge and hands-on experience in all areas of the supply chain management process
and make professionals capable of handling the day-to-day activities of an organisation.

Importance of Logistics in Supply Chain

Management
The efforts to design and manufacture a product per customer demand would all go to waste
if the product did not reach the customer at the right place and time. This is where logistics
plays an important role in supply chain management. Logistics in the supply chain can involve
functions such as order processing, fleet management, warehousing, materials handling,
order fulfilment, inventory management, and demand planning. Effective logistics
management involves integrating all these functions for smooth working to ensure increased
productivity and customer satisfaction while keeping low operational costs.

A logistics failure would lead to the eventual collapse of the entire supply chain. Logistics
management helps organisations respond quickly to market or customer requirements
changes, enhances visibility, ensures better management of resources, and gives a
competitive edge.

6 Major Types of Logistics in Supply Chain

Management
The field of logistics can be differentiated based on services performed in the supply chain. It
is a complex process involving various steps before the product reaches the right customer at
the right time. Various logistics are involved in the supply chain, ensuring order fulfilment and
deliverables are met to guarantee customer satisfaction.
1. Inbound Logistics
Inbound logistics involves the management of resources that are necessary to make a product
or service of an organisation. It involves managing different suppliers/vendors, inventory,
costing, and transportation. Inbound logistics must ensure the right resources in quantity
reach the organisation at the right time. It is a complex process requiring connecting with
various resource providers to make one final product. Inbound logistics is mainly concerned
with the movement of resources from suppliers to production.

The logistics companies plan to effectively manage the inbound logistics using order-
fulfilment technologies or automatic ordering. Additionally, you may anticipate that this
integration will strengthen your organisation's strong points. For example, if your factory
produces auto parts, you must ship them to customers or recipients like manufacturers to use
them on the finished goods.

Transferring the raw materials to the appropriate departments or manufacturers for

additional processing is the responsibility of inbound logistics. Transporting these
unprocessed raw materials typically involves using large vehicles. To move goods safely and
affordably, logistics companies have a broad network and trucks. To prevent impeding the
subsequent operations, improving process flow at this stage of the logistics value chain is
crucial. For a hassle-free logistics service, pick the best logistics provider. You can get
assistance from Trans Asia Group with an effective inbound logistics setup.

2. Outbound Logistics
Outbound logistics refers to delivering the right product at the right time to customers at the
best possible minimum cost. It focuses on the demand side of the supply-demand calculation.
Customer satisfaction is the main objective of outbound logistics. It is concerned with
delivering the product from the distribution centre to the customer. It involves procedures
such as order processing, packaging, and shipping to the destination.

To put it simply, outbound services allow enterprises to ship and transport their specified
products from warehouse storage to the client's door. For end, consumers to track the
progress of their package, various tracking options are provided. Customers expect their
goods or products to be delivered promptly and safely. Thus, extra care should be given since
outbound logistics play a significant role in establishing the reputation of enterprises.

Employ logistics firms like Trans Asia Group for your enterprises since, depending on the
region, they provide outbound logistics with same-day delivery. Trans Asia will deliver your
order on schedule, so you can rely on them.

3. Reverse Logistics
Reverse logistics is the process connected with managing product returns and refunds. It is
the movement of the product from customers back to the seller or manufacturer. The
products returned may be received late or not required by the customer, damaged in the
delivery process or eligible for repair, refurbishing, or recycling. Reverse logistics helps
organisations properly dispose of products that can minimise penalties for noncompliance
with environmental regulations.

4. Procurement logistics
Procurement logistics is sourcing materials/services required to manufacture a product.
Procurement is the major element in inbound logistics, and the scope depends on the size
and nature of procurement required by an organisation. Procurement logistics aims to control
supplies as per the requirement of the various operational processes of the organisation. It
involves monitoring quantities to be supplied, supply frequency, inventory management,
demand forecasting, quality of service delivery, vendor selection, types of packing required,
and mode of transportation required, among other factors.

5. Manufacturing logistics
Manufacturing logistics refers to the planning, coordination, and service tasks required to
carry out production activities within a manufacturing plant. It is organising and managing the
transportation, storage of materials and finished products within a manufacturing plant. It
also includes determining when to shut down the manufacturing plant for maintenance,
managing inventory levels, and meeting production schedules.

6. Distribution logistics
Distribution logistics, also known as sales logistics or transport logistics, deals with the
movement of goods from manufacturer to customer. Customers can either be final customers
or distributors. This logistics is the driving force behind order fulfilment services. Supply chain
management online courses enable professionals to learn more about the processes and
methods to run a lean and efficient supply chain management .

The Role of Logistics

Logistics services can be simple and complex at the same. It plays a determining role in
successful order implementation. Let's find out more about these roles:

Order processing
The logistics department is responsible for processing all the orders placed by the customers.
It is essential for a fast and effective flow of information that surrounds the delivery process.

Inventory management
Inventory involves stocking finished goods in a warehouse or storage facility. Inventory
control and maintenance are required to support the transportation and delivery processes.
The stocked goods should be stocked according to the demand or future predictions. Above
all, they should be kept safe.

Warehousing
Warehousing is an extension of inventory management. Unlike inventory, warehousing is
limited to tracking stock movement within a warehouse and not all locations. Operations take
place on the individual warehouse level.

Packaging
Packaging includes all the activities that ensure the safety and quality of goods transported
and delivered to the customers. It is vital as several people would handle the products and
store them under various circumstances. It is one of the factors that determine delivery
success.

Cargo handling
Handling packaged goods form the basis for safe and timely delivery. Logistics services must
have an effective package and handling procedures. Customers should be delivered products
of desirable quality. The procedures for return are quite extensive, and returns due to
damaged products can result in a bad reputation.

Transportation
Transportation is required at different stages and types of logistics services. A company's
transportation system defines the success of its supply chain management system. A few
steps to increase the transportation system include a shipper's portal, route optimisation with
Estimated Time Arrival (ETA), customer notifications and live tracking, analytics,