The logistics activities constitute the basis of a company’s supply and distribution processes. The competent management of logistics is a core of any entity’s successful functioning (Baudin, 2004). The fundamental elements of logistics are its two types, namely inbound and outbound logistics. Inbound logistics includes the activities related to managing the flow of raw materials and products from suppliers to production facilities (Ghiani et al., 2013). Outbound logistics is a set of activities that regulate the flow of manufactured goods from the producer to the end consumer.
An industry of sporting apparel production might illustrate the utilization of logistics. According to Myerson (2012), lean logistics is an approach that balances inbound and outbound activities to eliminate wasteful processes. For the chosen industry, inbound logistics processes include managing suppliers who provide raw materials to the company using transportation, outsourced production companies, and design entities. As for outbound logistics, the industry integrates multiple channels of goods distribution depending on the preferences of customers. For example, wholesale, online, and retail channels might be used as a core for outbound logistics in the sporting apparel production industry.
One of the most significant challenges in inbound and outbound logistics is the choice of the logistics philosophy. The differences in industries, company cultures, and market particularities require the relevant application of logistics approaches. As stated by Rouhollahi (2011), the choice of either lean or agile logistics will predetermine the set of philosophical approaches to managing the flow of materials and goods. These challenges are also influenced by the goals of reduced costs, increased profitability, productivity, and competitiveness in the market, which are pursued by all companies. Moreover, supply and demand should be aligned and properly integrated by choice of logistics approach.
References
Baudin, M. (2004). Basic lean tools: You can’t build a house without a solid foundation. Web.
Ghiani, G., Laporte, G., & Musmanno, R. (2013). Introduction to logistics systems management (2nd ed.). West Sussex, UK: John Wiley & Sons, Incorporated.
Myerson, P. (2012). Lean: Supply chain and logistics management. New York, New York: McGraw Hill
Rouhollahi, Z. (2011). Logistics philosophies. In L. Kardar, S. Rezapour, & R. Z. Farahani (Eds.), Logistics operations and management: Concepts and models (pp. 55-70). Waltham, MA: Elsevier.