Onesphore RAKOTOMALALA

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 What is Outbound logistics?

➝ Outbound logistics is all about getting finished products out of storage,

fulfilling orders, and delivering them to customers.

It's the part of the supply chain that deals with:

storing transporting delivering

…goods to the customers or end user.

Outbound logistics focuses on the demand side of the supply-demand equation.

➝ Its key relationships :

Distributor Wholesalers Retailers End customers

 Importance of Outbound Logistics

➝ Outbound logistics are crucial for a supply chain's success. It directly affects:

Customer Satisfaction
By ensuring timely and accurate delivery of products.

Brand Reputation
By delivering a positive customer experience.

Competitive Advantage
Distinguishing the company from its competitors.

Financial Impact
By reducing costs and optimizing resources.

Carrier Selection
Choosing the right carriers and shipping methods ensures
cost-effective and reliable delivery to customers.
 Oubound Logistics activities

➝ Below are the essential activities involved in managing outbound

logistics:

W arehouse and Storage Management

Keeping goods safe and organized until they're ready to ship out.

Inventor y Management

U sing software to track products, fill orders accurately, and prevent

damage or loss.

Transportation

Choosing the best shipping method based on product type, like

trucks for heavy items or planes for perishables.

D elivery

Ensuring orders are on time, accurate, and undamaged for happy

customers.
 Oubound Logistics activities

D istribution Channels

Deciding how products reach customers, either directly or through

intermediaries.

Last-mile Delivery

It is the last step of getting a customer's order from the warehouse to their
doorstep.

D elivery Optimization

Making delivery faster, cheaper, and transparent, often using software

for efficient route planning and management.
 Oubound Logistics Processes

➝ Outbound logistics processes includes the following 7 core steps:

Customer A customer places an order through one of the company's

Order sales channels.

Order The company validates the order, retrieves products from

Processing inventory, and prepares necessary documentation.

Reserved inventory moves to main storage, replacing sold

3

Inventor
This
y
products. may trigger production or ordering of raw
Replenishment
materials to maintain inventory levels.

Warehouse staff selects products from storage to fulfill the

Pic k ing
order.

 Outbound Logistics Processes

5 Workers package, label, and prepare the order according

Pac ing,
k
to internal and customer specifications.
Staging, and
Orders are sorted based on shipping method, delivery
Loading
speed, or destination, then loaded onto outgoing trucks.

6
The order leaves the warehouse for distribution centers or
Shipping and partners.
ocumentation The company's system records the shipment and provides
D

tracking details to the customer.

7
The order is delivered from the distribution center to the
Last Mile
customer, often the most expensive and critical step in the
D elivery
process.

 Ad vantages of Outbound Logistics

➝ Outbound logistics offers numerous advantages, including :

Faster deliveries

Decreased returns

More on-time deliveries

Fewer order cancellations

S tronger company reputation

Less damage and loss in transit

 C hallenges of Outbound Logistics

➝ S ome of the challenge of outbound logistics are:

S treamlining Operations

Maintaining efficient movement of goods from production to delivery.

S even Rs Success

Ensuring the right product reaches the customer in optimal condition,

quantity, time, place, and cost.

M anaging Inventory Costs

Balancing stock levels to meet demand without incurring unnecessary

expenses.

C ost-effective Shipping

Controlling transportation expenses through analysis and strategic

approaches.

M eeting Customer Demands

A ddressing expectations for fast, free delivery and real-time tracking to

enhance customer satisfaction.
 B est tips for Outbound Logistics

➝ Optimize outbound logistics with these best tips:

F ast Delivery Preparation

U nderstand the requirements for fast shipping, such as setting up product

staging and tailoring packaging to meet distribution center guidelines.

A dapt to Inventory Trends

A djust outbound logistics strategies to align with inventory trends like

j ust-in-time (J IT) inventory.

S trengthen Partner Relationships

Collaborate closely with customers and freight providers to optimize

production, order fulfillment, and shipping.

E fficient Route Planning

Implement automated route planning to reduce waiting and travel time

for deliveries, cutting fuel costs and enhancing customer satisfaction.

C onsider 3PL Services

Outsourcing to a third-party logistics provider (3P L) can be cost-

effective and less complex.
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