What Is Inbound Logistics - Manufacturing

What Is Inbound Logistics & Manufacturing? Updated facilities and equipment are important for optimized inbound logistics processes. Related Articles. 1 Outbound Vs. Inbound Logistics 2 The Importance of Warehousing in a Logistics System 3 What Is Inbound & Outbound Customer Service? 4 The Importance of Business Logistics. Inbound logistics is an integral element of business operations for a manufacturing firm, involving the processes of receiving, storing and distributing raw materials for use in production. It is the first stage in value chain, which business management expert Michael Porter outlined in his 1985 book "Competitive Advantage." Small business manufacturers may not manage as much inventory, but should still optimize inbound logistics processes. Materials Receiving. Receiving and storing raw materials is a massive undertaking for large manufacturers, but it is a main part of inbound logistics for any business. Smaller companies often maintain receiving areas within the same plant in which manufacturing and production takes place. Larger companies may have separate facilities for storing raw materials. Typically, manufacturers have warehouse staff that receive materials, confirm accuracy and organize it for easy access. Materials Distribution. The organizational element of the materials receiving process is significant because it greatly effects the efficiency with which staff can distribute materials to manufacturing as requested. Once requests for materials come in, warehouse staff track down the materials, load them, check them out of materials inventory and distribute them to the requested area. Delays in this process because of poor organization or response can set back production and cost the company money or opportunities. Value Chain. As noted, inbound logistics is the first step in Porter's value chain. The value chain is a set of value-generating activities within a company between the time materials come in and the time finished products are marketed. Inbound logistics set the stage for the subsequent steps in core business activities for a manufacturer. Operations segue to outbound logistics and then products move into the marketing, sales and service stages. Support Systems. Employees who function in the area of inbound logistics are supported by organizational systems, and other departments and employees, according to Porter's value chain analysis. Human resources processes that motivate logistics employees to optimize efficiency are important. Company infrastructure and organizational culture help dictate how willing logistics employees are to collaborate with other company employees. Technology is increasingly integral to optimized efficiency in materials inventory replenishment, monitoring and organizing. Purchasing managers help the company get the best rates on raw materials for use in production. References (2) About the Author. Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.