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What is outbound logistics?

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Shubham Talwar
e- commerce and service sector Expert

Outbound logistics is the process of storing, transporting and distributing goods to customers. The outbound logistics process starts with a customer sales order, moves on to warehouse packing and ends with product delivery.

Outbound logistics refers to the transportation, storage, and delivery systems that bring your products to your customers. Outbound logistics is the way you bring your finished products to their destination. Your outbound logistics networks will generally work with different partners than your inbound logistics network. While some entities in the transportation industry specialize in inbound logistics, others specialize in product distribution and delivery. The process for outbound logistics reflects these differences. While inbound logistics will bring raw materials into your business, outbound logistics will move your finished products to their destination. Often, this requires moving your products to a distribution center where they are routed to your customers.

Outbound logistics networks can be quite a bit different than an inbound logistics network. Because of these differences, it is usually helpful to separate them both. Consider the fact that your inbound logistics network brings in a steady supply of materials that are roughly matched to your operational needs. On the other side, your outbound logistics network is designed to bring your products to your customers. This may mean distributing your products when they are ordered. If you deliver direct to consumers, this means moving your products through a distribution network and eventually to a carrier that will handle final-mile delivery.