The Importance Of Inbound Logistics Flow

Today's business environment forces the companies to revise their processes in order to stay competitive in the marketplace. Revising the inbound logistics flows is not an exception. Increased focus on coordination of inbound logistics flows is a prerequisite for securing the quality in form of the delivery performance as well as the total logistics cost perspective.

Knowing how to apply the current trade standards, Incoterms, is one way of analysing the inbound logistics flows. This in order to understand what affect the inbound flows have on the total cost of the product. The choice of the right delivery term depends on many circumstances, such as the flow of goods, type of goods or components and customer service required. By choosing the delivery term that provides the company with the most responsibility and cost undertaking when it comes to inbound transportation, a company obtains the greatest possible control of the goods flows into and from the company. By having control of the goods flow, a company can make warehousing, production and transports more efficient, create routines and thereby cut costs.

Refresco should revise the use of certain delivery terms that are

In that way, Refresco Purchasing Buyers of the raw materials will have an overall picture of the entire inbound transportation and warehousing activity, which among others enables finding possibilities in coordination, as well as the use of knowledge and expertise about both the transportation and warehousing market and buying power that the purchasing department of Refresco has. By doing so, the department of purchasing will be able to concentrate on their core business, at the same time as the transportation cost and the total logistic cost of the inbound flows could be minimized. In order for this solution to work, Refresco Purchasing department need to work more