Business operations are composed of many different processes and systems, but perhaps one of the most crucial would have to be the logistics system. Logistics is one of the basics you will have to think about when you first start selling products and services. Without logistics, it would be difficult, if not impossible, to be able to operate. Businesses are practically run on their ability to transport and store goods and materials. Without this ability, or if they are not properly managed, the company could lose profits. 

What is logistics?

If you’re planning to run a business, the first thing you should think about is how your goods and resources will be transported and handled and by whom you will entrust this task. Logistics is the process of handling and managing resources, acquiring materials, distributing them, and other activities related to supply chain management. Not being able to store and transport goods properly can result in damage or loss of goods, delays in operations, and more. 

Fortunately, you have many choices of companies that you can entrust with delivery services in Malaysia. A large handful of local and international courier companies also make their delivery services available at the business level. It’s extremely important for businesses who need to deliver their goods to other addresses and also to their other plants.

But did you know that logistics systems don’t just handle the delivery of goods? There are many types of services that your business might need. Let’s learn more about the different types of logistics in detail.

What are the different types of logistics?

1.Inbound logistics. 

Inbound logistics is concerned with the movement of goods from the supplier of your materials and resources to your warehouse and eventually to your manufacturing plant and production facilities. The type of goods that are involved in inbound logistics is raw materials that are set for further production and processing. An example of this is the creation of many types of food. Most food products have ingredients that need to be combined and processed to be made. Businesses in this sector will have suppliers that they need to buy and ship materials from.

2.Outbound logistics. 

Outbound logistics is concerned with the movement of goods from your manufacturing plants or production facilities to the next part of your supply chain link. The type of goods that are involved in outbound logistics is finished goods or processed items that are ready to be sent off to the end-user. An example of this would be phones and other gadgets that have been assembled and are now ready to be shipped to third-party sellers or their retail outlets. Same day delivery in Malaysia, transportation of goods over international borders, and shipping from one manufacturer to supplier can count as outbound logistics.

3.Reverse Logistics. 

As the name suggests, reverse logistics refers to the movement of items from the end-users back to earlier stages of the supply chain. This can occur for any number of reasons-- for example, if the product turns out to be defective. No business owner wants a return of their products, but sometimes it is necessary to fix issues. Refurbishing, replacing, repairing, or even simple services on the product can fall under reverse logistics.

4.3P Logistics. 

Short for third party logistics, this type of logistics aims to take delivery services a step further by optimising the flow of goods during the entire process. It incorporates everything from supply chain management to warehousing and transportation and even involves the study of production and lead times to maximise profits.

Choosing a logistic partner

If you want to improve all areas of your supply chain, your chosen logistic company should be able to provide a wide variety of services that can address your needs and long-term goals. Hiring a competent logistic partner can ensure your company’s image is protected and that your operations will be much smoother.

Hock Cheong Logistics is a logistic company based in Malaysia and now expanding to other countries in Asia. Contact us to know more about our delivery and warehousing services.