When materials and products are moving in the company we can talk about inbound, inhouse and outbound logistics. In the figure below illustrated the concepts of inbound, inhouse and outbound logistics.
The first stage of Inbound logistics is procurement. Inbound logistics include receiving goods, checking, unloading goods and placement in the warehouse.
Inhouse logistics means handling materials and products within own organization when it is not inbound or outbound logistics. Inhouse logistics functions among other things are assembly and maintenance of equipment.
Outbound logistics include warehouse picking and packing as well as outgoing from the loading dock distribution and transportation.
Outbound logistics include also reverse logistics and value-added services. Value-added services are, for example, services related to sorting products, packaging, maintenance and recycling. Reverse logistics means, for example, customer returns, warranty and maintenance services as well as recycling. In reverse logistics, product flow moves from customer to supplier.