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Logistics is termed to be a complex service execution between the origin point and the point of fulfillment. These dedicated logistics companies intend to meet the necessities of clients upon different products or resources.
Some of the common resources that are managed with logistics are materials, supplies, hardware, consumable things, foods, and other such tangible products. The entire process of logistics is a combination of different service aspects that include creation, stock, packaging, regular security, warehousing, and transportation.
There are different types of logistics that you need to be aware of. This article will give you an in depth idea about the five major types of logistics. So let’s dive in!
1. Inbound Logistics
Inbound logistics is used to execute strategic organizational tasks for working upstream. Under this inbound logistics, the movement, transportation and storage solutions of various information and product from the suppliers is passed onto the warehouse and then is transferred to the production facilities for further processing & production. Inbound logistics is all about the transportation between the companies and their suppliers.
The logistic firms intend to use order-fulfillment systems or automatic ordering for proficiently managing the inbound logistics. And with this integration, you can expect to enhance the successful aspects of your organization. For instance, if you are manufacturing car parts in your factory, you will need to ship them to businesses or recipients such as manufacturers, for implementing them upon the finished products.
The job of inbound logistics is to transfer the crude or raw materials to the respective departments or manufacturers for further processing. Large trucks are mostly preferred for transporting these crude raw materials. Logistics companies have wide network and large trucks to safely transport the goods without much cost. It is the first step within the value chain of logistics, for which it is important to seek better process flow, to avoid hampering the remaining processes. Choose the right logistics company for a hassle-free logistics service. Trans Asia Group can help you with setting up your inbound logistics in an efficient manner.
2. Outbound Logistics
Outbound logistics is the movement of products or finished goods from the production centers to the next supply chain link. After that, these products are moved from the warehouse to the consumption point or the customers. Hence, outbound logistics is also known as the process of order fulfillment.
All the products that are shipped under outbound logistics are meant for end-users, moving through this process flow. The inbound logistics is used to help the raw materials reach out to the manufacturer, and the processed product is then transported to the end-users through outbound logistics.
In simple terms outbound services allow businesses to ship & deliver their specified products from warehouse storage to the customer’s doorstep. There are separate sets of tracking solutions available for the end-users to monitor the movement of their parcel. Extra care should be taken as outbound logistics play a major role in building the reputation of businesses, as customers expect on-time and safe delivery of their goods or products.
Hire logistic companies like Trans Asia Group for your businesses as they offer outbound logistics with same-day delivery, depending upon the location. You can trust Trans Asia with the delivery of products within the estimated time.
3. Reverse Logistics
As the name suggests, Reverse Logistics is the transportation of goods or products from the end-users to the supply chain. Reverse logistics is needed in the event of a replacement or return of products for refurbishing, repairing, exchange, disposal, or recycling.
Reverse logistics is basically carried out after the sale is done and is mostly opted by the electronics and automobile industry, but is also used for products associated with all other sectors. Suppose, you deliver a product that doesn’t fit the purpose, or is wrongly manufactured. You will have to send it back to the supplier for repair or replacement of the same. In such scenarios, reverse logistics is required to get it done smoothly.
4. Third Party Logistics (3PL Logistics)
Third-party logistics (or 3PL) is known as outsourcing operational or eCommerce logistics to a third party logics company who then handles everything from inventory management to delivery of the products. This enables business owners to focus on their business while the order fulfillment operations are handled smoothly by a 3PL provider.
A 3PL specialist company provides a wide range of services that supports the logistics of the supply chain. The services include transportation, warehousing, inventory management, picking & packing, freight forwarding, and reverse logistics/returns.
5. Fourth Party Logistics (4PL)
4PL or fourth-party logistics is used by companies to outsource all of their logistics operations to a single logistics partner. The logistics provider would be responsible for managing the entire supply chain including assessing, designing, building, running and tracking supply chain solutions for the client. This is why a 4PL logistics partner represents a higher level of supply chain management for the client.
Having a 4PL logistics partner has many benefits. If you’re looking for a logistics partner who can manage your supply chain effectively, then check out Trans Asia Group.
Conclusion
These are the 5 major types of logistics that are being carried out by proficient companies to help meet the transportation and shipping requirements of businesses and manufacturers, through the supply chain.
So, if you are running a company that involves shipping and transportation of products to customers at their doorstep, you need to pick the right logistics firm, that can offer you diverse service aspects at nominal pricing. That’s where Trans Asia can help you!
To know more about our logistics services, contact our logistics experts today!