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Types of logistics
Movement consolidation is when you can send 1000 cartoons of your good in that , now you are selling 2 products A and B , now you can combine a and b and put in transport to reduce transport cost , just in case it can be kept together and let it get transported .
It can happen in larger scale , they will try to consolidate with other businesses , if you feel its safe ,where 2 business owners are putting their items together. There must be a contract.
#Types of Logistics
1.Inbound logistics - It brings material to you , lets assume artificial jewellery manufacturer , in this logistics it brings raw materials to my factory. It involves all activities associated with procurement of raw materials from vendors . It involves pre production activities . It involves movement of raw materials .Upstream Logistics
It is called upstream logistics because in terms of value addition
It includes demand forecasting , material handling , transportation , sourcing and order placement . We are looking at our business point of view as a manufacturer so storage may or may not include .
2.In process logistics - It involves all the activities associated with the management of procured parts and materials , distributed inside a factory , product management , packaging and shipping to warehouse. It involves managing WIP Inventory as it flows between stages of inventory
once you receive the raw material you start manufacturing. Logistics within your plant .
It includes Inventory management , warehouse , product management .
3.Outbound logistics - It involves all the activities associated with physically distributing of product to the customer , it involves post production . it involves procurement of finished goods from warehouse to customers . Downstream logistics
It is called downstream logistics because in terms of value subtraction
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