Inbound traffic as the name suggests is
the traffic of goods coming into the organisation. It actually moves
materials from suppliers to the organisation's receiving area.
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Traffic's importance is exemplified by the fact that, in general,
transportation cost and service factors affect the cost of the
material substantially. Since the inbound traffic caters to the need
of operation in the organisation, inbound traffic's efficiency has a
direct bearing on operations of the organisation. It decides on
issues like the :
# Type of packaging,
# Transport (road, rail, air, and so on),
find the best transport operator,
# Designing a route, |
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# Reasonableness of cost
# Safety and legal requirements ,
# Timely deliveries |
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In a competitive era, it's not the transportation cost incurred
by an organisation only, rather the cost incurred by the
organisation's competitors.
A high transportation cost will have
bearing on the subsequent value addition exercise leading to a
higher product cost that may be disadvantaged in respect to the
prices being offered by the competitors.
Similarly, packaging of a consignment needs proper planning as
movement of it may be needing special packaging, handling, packaging
material keeping in view the environmental requirements , ease in
shifting and moving and yet be cost effective.
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Inbound traffic routing assumes importance because of traffic
timing. Availability of rail, road, air or sea play the crucial role
for determining the proper route of goods movement. |
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