What does Outbound Logistics mean?

Outbound logistics, also known as distribution logistics, is the process of packaging and distributing client orders utilizing particular or multimodal transportation. It entails order processing and consolidation, as well as product packaging, dispatch, and transportation to their respective destinations and it is concerned with goods sales (out of the company), e.g. the flow of goods from the manufacturing line to the end customer.

The primary goal of outbound logistics is to ensure that products arrive at their final destination in the correct amounts and at the appropriate time, whereas inbound logistics aims to ensure that the organization has all of the necessary materials to conduct the business efficiently. Within the list of outbound logistics activities, we can mention some such as warehouse and storage management, inventory management, transportation, last mile delivery and delivery optimization.  

Businesses  must optimize order preparation and streamline freight management, loading and shipping procedures with carriers to improve the efficiency of their outbound logistics operations. It is no use if upstream operations (e.g. inbound logistics and warehousing) run smoothly if the last step in the supply chain is inefficient.