Importance Of Inbound Logistics

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Why Is Managing Inbound Logistics Important To An Organization? Inbound logistics relates to the movement of goods or the materials from suppliers and vendors into manufacturing procedures or storeroom facilities. Inbound logistics basically comprises of two functions that are the purchase of materials and the logistics that are the procurement and planning. The management of inbound logistics is important to organizations for two major reasons, one that relates to the organization and the other that relates to the suppliers and vendors. Of course, reducing costs by effective management of inbound logistics does not mean that suppliers and vendors are effective negatively. There got to be a way where both take advantage of effective management of inbound logistics otherwise there would be costs increment at other instances (Gonzalez, 2002). Managing inbound logistics is important because managing the expenses of movement of goods all the way through the supply chain is an enormous task for both the shippers and deliverers. A particular consignment comprises of both inter and the intra organizational dealings and exchanges. During this interchange and communication, data and information is required by different people in addition to customers, vendors, transporters, customer service agents, secretarial, acquisition, product management, inventory supervision, storehouse administration, and completion. Companies procure transportation services with specific carrier partners that both meet their requirements for price & service and have a solid understanding of the nuances of their business needs. Additionally, these companies establish business processes and rules of engagement to facilitate the efficient flow of information and m...

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..." References Aldrich, D. (1998) The new value chain – Today’s digital age means companies must rethink how they deliver what their customers value. Information Week, September 14, 1998. Gonzalez, Adrian (2002) Inbound logistics drives strong demand for transportation systems Warehousing Management; Radnor McGinnis, Michael A. and Cancro, J. Patrick (2003) “Logistics Basics for Purchasing and Supply Professionals”, http://www.google.com.pk/search?q=cache:bviDnM1ZSCYJ:www.ism.ws/ResourceArticles/Proceedings/2003/McGinnisHH.pdf+inbound+logistics+important+to+an+organization&hl=en&ie=UTF-8 Rayport, J.F. & Sviokla, J.J. (1995) Exploiting the virtual value chain. Harvard Business Review, 73(6): 75-86. Tyran, Craig K. and James Coakley (2000) Supplemental Class Notes: The Value Chain, http://www2.bus.orst.edu/faculty/coakley/BA471_web/Lectures/Value_Chain_Class_Notes.htm

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