Basic Terminologies in Supply Chain Management

Dear Supply Chain and Operations enthusiasts, Being a supply chain management and operations student, I understand the issues that a novice faces in this field when he/she comes across new terminologies like- inbound and outbound transportation, distribution centers, 3PL, 2PL and many more. So to help those students/working employees I am writing this blog with an insightful explainations of these jargons. 1. Inbound Transportation Cost- Inbound logistics refers to the network that brings goods or materials to your business. Your inbound logistics network includes everything needed to transport, store, and deliver goods to your business from other suppliers. Essentially, inbound logistics refers to everything that you need to bring into your operations to create the finished product you eventually sell. In most cases, you will want to receive your raw material close to when you are actually going to use it. This means that your inbound logistics network must be tailored ...