Inbound logistics refers to the process of bringing purchased products inside the company. While outbound logistics checks that the movement of goods is from the manufacturing company to its customers or other companies, inbound logistics basically focuses on the receipt of goods, or the entry of goods from suppliers into the warehouse. The primary goal of inbound logistics is to ensure that the organization has all of the necessary materials to conduct the business smoothly. Companies must predict demand, establish how they will receive supplies, organize product flows, and, most importantly, manage product receipt without errors for an effective procedure.
Inbound logistics involves the transportation, storage and receipt of goods in a company, as well as for the purchase of things for the office or industrial unit. The production unit of a manufacturing company buys raw materials or components from its suppliers to manufacture other goods. Efficiency in inbound logistics is therefore critical: this phase will make or break the company's supply chain. It is difficult for the company to start the manufacturing process or market its products without the correct acquisition, receipt and storage of the materials needed to carry out the business activity (production and/or sales).
