In simple terms, outbound logistics is simply the process of shipping products out to customers. Sounds so basic, right? But did you know that outbound logistics is one of the basics that comes with a complex understanding? That’s why, if you might want to know more about what is outbound logistics, it will be provided to you as you proceed through this blog.
INSTANT QUOTE
What Is Outbound Logistics?
Outbound logistics refers to the processes involved in the movement and storage of products from the end of the production line to the end user. This can be commonly seen to businesses like furniture store delivering items like tables and sofas to newly-built home of a customer. It encompasses all the activities related to the distribution of finished goods, including order processing, warehousing, transportation, and delivery.
Objectives of Outbound Logistics
The objectives of outbound logistics are simply the objectives of any other types of logistics that businesses might be involved in. These are mainly:
- To deliver products to customers on time and correctly.
- To keep transportation costs as low as possible.
- To improve customer satisfaction by providing efficient and dependable delivery services.
SEE ALSO:
- Three Types of Logistics Explained: Inbound, Outbound, Reverse
- Inbound Logistics in Value Chain and the Inbound Operations
- Reverse Logistics Importance: Why You Shouldn’t Neglect It?
Role of Outbound Logistics in Supply Chain Management
Outbound logistics is a very important part of supply chain management just like how inbound logistics play a great importance. Its role is to connect the production of goods to getting those goods to the final customer.
Outbound logistics includes as well the process of ensuring that the correct products are delivered at the scheduled time and destinations. By doing this effectively, outbound logistics helps make the entire supply chain more efficient and successful.
But even with the acknowledgement the role of what is outbound logistics to your supply chain operations, getting the right tool or partnering with the right provider is a different challenging task that you must pretty much should be aware of.
Importance of Outbound Logistics and Selecting the Right Logistics Provider
Ensuring Timely Delivery to Customers
One of the key reasons outbound logistics is essential is its role in ensuring timely delivery of products to customers. Timely delivery is crucial for customer satisfaction and retention, as well as for maintaining a competitive edge in the market. You can only do it with a help of the the right 3PL provider that can attend to your deliveries may it within the day, scheduled, or through roro shipments.
One of the leading 3PL providers nowadays is Transportify. Not just a bulk carrier through its full truck load service, it can also accommodate your goods in small batches via cargo forwarding service. The interisland delivery is also their known delivery service around the Philippines as they commonly deliver to main cities like Cebu and Davao, and other key areas that your business might also operating from.
You may have a brief scanning on Transportify’s available vehicle selection and check what best suits your needs.
| Vehicle Type | Dimensions/ Weight Limits | Base Price (Metro Manila) | Base Price (Outside Metro Manila) | Base Price (Visayas/Mindanao) |
|---|---|---|---|---|
 Wing Van | 32 to 40 x 7.8 x 7.8 ft 12000kg to 28000kg | 7000 PHP | 6500 PHP | 6500 PHP |
 6w Fwd Truck | 18 x 6 x 7 ft 7000kg | 4850 PHP | 4850 PHP | 4850 PHP |
 Closed Van | 10 to 14 x 6 x 6 ft 2000kg to 4000kg | 1600 PHP | 1450 PHP | 1450 PHP |
 Open Truck | 10 to 21 x 6 ft x open 2000kg and 7000kg | 2300 PHP | 1950 PHP | 1950 PHP |
 L300/Van | 8 x 4.5 x 4.5 ft 1000kg | 415 PHP | 374 PHP | 335 PHP |
 Small Pickup | 5 x 5 ft x open 1000kg | 418 PHP | 338 PHP | 325 PHP |
 Light Van | 5.5 x 3.8 x 3.8 ft 600kg | 375 PHP | 292 PHP | 275 PHP |
 MPV/SUV | 5 x 3.2 x 2.8 ft 200kg | 240 PHP | 210 PHP | 160 PHP |
 Sedan | 3.5 x 2 x 2.5 ft 200kg | 220 PHP | 190 PHP | 140 PHP |
Enhancing Customer Satisfaction
Efficient outbound logistics operations enhance customer satisfaction by delivering products in good condition and within the promised time frame. This, in turn, helps build a positive brand image and foster customer loyalty. At Transportify, we ensure that the customers we serve are receiving the best quality of service that we promise. You can check our website for the list of customers from big businesses, other logistics providers, SMEs, and retail shops and merchants who experienced the real deal with Transportify.
Optimizing Transportation Costs
Outbound logistics also plays a significant role in optimizing transportation costs by streamlining delivery routes, consolidating shipments, and choosing the most cost-effective modes of transportation. Transportify’s Cargo Forwarding Service is excellent in this field as it gives businesses the edge to utilize the platform in the most efficient transportation method. If your business is based here in Luzon and your goods to deliver might only need an L300/Van but should be shipped out to cities in Visayas and Mindanao, Transportify can help you bridge to the reliable freight forwarding partners which will cost you depending on the resources you occupy or used. This leads to improved profitability for businesses.
Key Components of Outbound Logistics with Transportify
Order Processing and Fulfillment
Order processing and fulfillment involve activities such as order entry, picking, packing, and shipping. Efficient management of these processes is crucial for ensuring accurate and timely delivery of products to customers. Transportify can only come to the scene within the shipping process and the material handling during the delivery as the first three processes require your internal resources to accomplish it.
Transportation Management
Transportation management encompasses the planning, execution, and optimization of the movement of goods. It involves selecting carriers, determining the best transportation routes, and tracking shipments to ensure on-time delivery. This is just the broad concept of the entire transportation journey in any kind of shipping process that you will be incorporating. But rest assured that Transportify, as an established transportation and logistics player, gives you the streamlined delivery experience you need.
Inventory Management in Outbound Logistics
Inventory management in outbound logistics focuses on maintaining optimal stock levels to meet customer demand while minimizing holding costs. It involves accurate forecasting, efficient warehousing, and effective order fulfillment processes, and all of these warehouse and inventory management system are practiced by Transportify. If you want to know more about our inventory management strategies, read them discussed in some of our blogs.
Answering what outbound logistics is simple but requires thorough understanding of its role in the supply chain as it directly impacts customer satisfaction, operational costs, and overall business performance. By understanding the meaning of outbound logistics and its key components, businesses can develop strategies to optimize their outbound logistics operations and gain a competitive advantage in the market.
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