Inbound logistics is split into procurement and production logistics and ensures the delivery and procurement of required goods. The result of optimal inbound logistics is the continuous supply of materials to a company without running out of crucial materials or the warehouse becoming too full. In addition, costs are to be minimised by optimising the flow of materials from procurement to the finished end product.
This includes all the tasks necessary to transport products from multiple suppliers to production, hold them and ship them. These tasks include planning, transport, intermediate storage, pre-assembly and delivery to the assembly line.
One of the best-known procurement strategies is just-in-time (JIT) delivery and its extension just-in-sequence (JIS) delivery. The opposite of inbound logistics is outbound logistics, which deals with the transport of finished products to the customer.