1. Planning Demand Forecasting: Estimating the demand to prepare inventory.
Route Optimization: Choosing the most efficient delivery routes.
Resource Allocation: Assigning vehicles, staff, and equipment.
2. Procurement Sourcing Materials: Finding and purchasing raw materials or products.
Vendor Management: Coordinating with suppliers to ensure timely deliveries.
3. Inbound Logistics Transportation to Warehouse: Moving goods from suppliers to warehouses or production facilities.
Receiving & Inspection: Checking for quality and quantity upon arrival.
Inventory Management: Organizing and storing goods properly.
4. Warehousing Storage: Keeping goods in suitable conditions until needed.
Inventory Control: Using systems (like barcodes or RFID) to track stock levels.
Order Picking & Packing: Collecting and packaging products for delivery.
5. Order Fulfillment Order Processing: Receiving and confirming customer orders.
Packaging: Preparing goods securely and efficiently.
Labeling: Adding shipping labels, tracking numbers, and documentation.
6. Outbound Logistics Shipping: Transporting goods from warehouses to customers.
Tracking: Real-time updates via GPS or tracking numbers.
Delivery: Last-mile delivery to the final destination.
7. Reverse Logistics Returns Processing: Handling product returns or replacements.
Recycling/Disposal: Managing waste or defective products.
8. Technology in Logistics WMS (Warehouse Management Systems)
TMS (Transportation Management Systems)
GPS & Real-Time Tracking
AI & Automation for route planning and forecasting
Real-World Example: Amazon Logistics
Orders received →
Inventory checked in a fulfillment center →
Items picked and packed →
Sent to regional distribution center →
Out for delivery via vans or bikes →
Delivered to customer.