We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Are Outbound Logistics?

M. McGee
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Outbound logistics are the processes involved in moving products from the creating firm to the firm’s customers. This portion of logistics is completely separate from taking and using raw materials, otherwise known as inbound logistics. This field relies heavily on transportation and storage of finished goods. Outbound logistics refers to the product from the seller’s standpoint, and product may mean different things to different people.

For the most part, outbound logistics is a very simple concept. The field is centered on two concepts, storage and transportation. The storage portion of the field uses warehousing methods to keep the finished product safe and accessible. At any moment, the product may need to move out to a customer, so organization is key to success. While this part of the field is based on storage, having as little product stored as possible is generally desirable, as stored materials aren’t making any money.

The transportation portion is generally the more involved and complex part of outbound logistics. In this field, it is important to move the product from one place to another in the best way possible. Factors need to be taken into account that cover all possible scenarios in order to find the best movement methods for goods. For example, delaying one shipment may cost the company money, but if that means it may be combined with a larger shipment, that may end up being more efficient in the long run.

This field is the opposite of inbound logistics. In that field, the primary concern is bringing the product to the company for processing. In many ways, the two fields operate the same way. With inbound logistics, people attempt to store as few materials as possible to prevent over-purchasing, and they work to make sure the raw materials arrive on time and for the smallest cost.

The similarities between the two fields are not unexpected, as one firms outbound logistics is another firms inbound. These terms are always from the standpoint of a specific company. If that firm purchases steel bars that it makes into cooling racks, then the bars are inbound and the racks are outbound. When another company purchases those racks to make into toaster ovens, the racks become inbound and the ovens are outbound.

One of the few times when this is not the case is when selling directly to the public. In this case, final retailers have inbound products, which are handled in the same way as any inbound logistics. As they sell the product, the customers are not considered a direct part of the supply chain and, therefore, the company simply has sales, rather than outbound materials.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
M. McGee
By M. McGee
Mark McGee is a skilled writer and communicator who excels in crafting content that resonates with diverse audiences. With a background in communication-related fields, he brings strong organizational and interpersonal skills to his writing, ensuring that his work is both informative and engaging.
Discussion Comments
By Telsyst — On Mar 15, 2014

@Certlerant - It is probably a good thing that a lot of things are tending to lean this way. Less trash for landfills. With more people downloading books it also saves a few trees.

By Certlerant — On Mar 15, 2014

@Glasis - A lot of stuff on the internet now is digital download. If you want to buy a movie or a book now, you sometimes buy the thing and get it right to whatever device you have. This must be a great thing for some companies. No more cost in shipping.

By Glasis — On Mar 14, 2014

The cost of outbound logistics can sometimes be a major part of the cost of a product. Since any product you buy, the difficulty in getting it to the customer has to be reflected in the final price.

M. McGee
M. McGee
Mark McGee is a skilled writer and communicator who excels in crafting content that resonates with diverse audiences....
Learn more
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.