What is inbound logistics?

Inbound logistics covers everything that brings goods into a business: raising purchase orders, supplier dispatch, transport, receiving at the dock, checking the goods against the order, recording them on a goods received note and putting them away. For a consumer brand, it ends when the stock is in a bin and available to sell, not when the truck arrives.

What is outbound logistics?

Outbound logistics covers everything that gets orders out of the business: allocating stock, picking, packing, invoicing, labelling, handing parcels to couriers on a manifest, and delivery to the customer. For a brand that supplies retailers or quick-commerce platforms, it also covers delivering purchase orders to their warehouses. Failed deliveries and RTOs are part of the outbound picture.

What is the difference between inbound and outbound logistics, with examples?

Inbound brings stock in; outbound sends orders out. A truck of 1,200 units from a supplier, counted, recorded on a GRN and put away, is inbound. Picking, packing and handing 450 customer orders to couriers is outbound. Inbound affects what is available to sell; outbound affects how fast and how reliably customers receive what they bought.

What are the inbound processes in a warehouse (receiving, GRN, putaway)?

Inbound starts before the truck arrives, with the purchase order and the supplier's advance shipping notice. On arrival come gate entry and unloading, counting against the PO and ASN, the goods received note, a quality check with damaged items quarantined, and putaway into bin locations. Stock is ready to sell only when putaway is recorded. Supplier deliveries, warehouse transfers and customer returns all come in this way.

What documents are used in inbound and outbound warehouse operations?

Inbound uses the purchase order, the supplier's advance shipping notice and invoice, an e-way bill where one is required, and the goods received note. Outbound uses the order, the pick list, the tax invoice, the shipping label with its AWB, and the shipping manifest signed at courier handover. Returns add a return note and a quality-check record.

What metrics measure inbound and outbound performance?

For inbound: dock-to-stock time, from unloading to stock in a bin, and the receiving match rate, the share of PO lines received with the right item and quantity. For outbound: order cycle time, on-time dispatch rate and RTO rate. Tracking both sides shows whether a late order started at packing or at a slow delivery days earlier.

Where do returns fit: inbound, outbound or reverse logistics?

Returns are reverse logistics: goods moving from the customer back to the brand. Physically, they arrive through the warehouse's inbound process: they are received, checked, recorded and either restocked, sent for repair or written off. Many warehouses run returns at a separate desk, so they don't hold up supplier deliveries.

What is the difference between inbound and outbound freight (carriage inwards and outwards)?

Inbound freight is the cost of transporting goods in from suppliers; accounting textbooks call it carriage inwards and treat it as part of the cost of purchases. Outbound freight, or carriage outwards, is the cost of delivering goods to customers and is treated as a selling expense. How your business books them is a question for your accountant.

What is inbound and outbound logistics?

Inbound logistics is everything involved in bringing goods into a business: ordering from suppliers, transport, receiving, checking and storing the stock. Outbound logistics is everything involved in getting orders out: picking, packing, labelling, handing parcels to couriers and delivering them to customers or buyers. In a warehouse, they are the two directions stock moves.

“Inbound” and “outbound” in sales and call centres mean incoming and outgoing calls or leads; that is a different topic.

How inbound and outbound logistics work in a D2C warehouse

Steps and documents in each flow

Inbound: goods coming in	Outbound: orders going out
Purchase order (PO) to the supplier	Order captured from the website or a marketplace
ASN from the supplier: what is coming and when	Stock allocated to the order
Gate entry and unloading at the dock	Pick list and picking
Count and check against the PO and ASN; GRN	Packing, invoice and shipping label
Quality check	AWB from the courier
Putaway to a bin location	Shipping manifest and courier handover
Stock available to sell	Delivery, or NDR and RTO if it fails

Example: one day in a brand’s warehouse. The numbers are illustrative.

Inbound: two supplier trucks arrive with 1,200 units across 18 SKUs. The team unloads them, counts each carton against the ASN, raises GRNs, holds 40 damaged units in quarantine and puts away 1,160 units by the afternoon.
Outbound: 450 orders come in from the website, Amazon and Flipkart. They are allocated, picked in batches, packed, labelled and handed to three couriers on three manifests before the evening pickups.

Both flows share the same dock, staff and stock record. A morning spent on a late truck delays packing; units still waiting for putaway can’t be picked for the day’s orders.

Returns, the third flow. Customer returns and RTO parcels come back into the warehouse, are checked, and are restocked or written off. This is reverse logistics, and it uses the inbound steps in reverse order of the sale.

Freight transport between factories, depots and warehouses, with trucks, routes and freight bills, is planned in a transport management system (TMS). It is a separate topic from the warehouse flows on this page.

Common mistakes

Receiving without a PO or ASN to check against. Short and wrong deliveries are found later, at picking.
Leaving received stock in the dock area. It is in the building but not in a bin, so it can’t be sold.
Letting inbound and outbound share the same hours without a plan. A big delivery at peak packing time slows both.
Treating returns as an afterthought. Unchecked returns sit in a corner and the stock count drifts.
Measuring only outbound. Slow receiving shows up later as stockouts and late orders.

Dock-to-stock time (inbound) = time from unloading to stock available in a bin. Example: unloaded at 10:00, all put away by 16:00 = 6 hours.
Receiving match rate (inbound) = PO lines received with the right item and quantity ÷ PO lines received. Example: 17 of 18 = 94%.
Order cycle time (outbound) = time from order to handover to the courier. Example: order at 11:00, manifested at 17:00 = 6 hours.
On-time dispatch (outbound) = orders handed over by the promised time ÷ orders due. Example: 441 of 450 = 98%.
RTO rate (outbound) = RTO shipments ÷ shipments dispatched.

Inbound and outbound logistics in the Indian context

E-way bills on inbound and stock transfers. CBIC’s e-way bill guide says an e-way bill is generated for movement of goods of consignment value more than ₹50,000, whether the movement is a supply or not. A supplier delivery or a transfer between your warehouses above that value needs one when it moves between states; for movement within a state, some states set a higher limit, so check your state’s rule.
Inbound to a marketplace warehouse. Amazon.in’s FBA FAQ describes the flow from the seller’s side: list your products and unit quantities in advance, prepare and label the products and packages, and ship them to Amazon’s fulfilment centre. It also says sellers must register Amazon’s fulfilment centre as an additional place of business with the tax authorities.
Outbound handover. Couriers and aggregators collect parcels against a manifest. On Amazon.in’s Easy Ship, the seller schedules a pick-up and an Amazon agent delivers the parcel. Either way, keep your own count of what was handed over.

How Fretron CommerceOS handles inbound and outbound

Fretron CommerceOS includes warehouse management for receiving and putaway. In Fretron CommerceOS, Ekart, ParcelX and Shiprocket shipments are booked, labelled, tracked and manifested from the order’s own screen. Delhivery and Blue Dart shipments can also be booked and labelled. It is a separate product from Fretron’s freight TMS, and not an ERP or accounting system.

Questions and answers

What is inbound logistics?: Inbound logistics covers everything that brings goods into a business: raising purchase orders, supplier dispatch, transport, receiving at the dock, checking the goods against the order, recording them on a goods received note and putting them away. For a consumer brand, it ends when the stock is in a bin and available to sell, not when the truck arrives.
What is outbound logistics?: Outbound logistics covers everything that gets orders out of the business: allocating stock, picking, packing, invoicing, labelling, handing parcels to couriers on a manifest, and delivery to the customer. For a brand that supplies retailers or quick-commerce platforms, it also covers delivering purchase orders to their warehouses. Failed deliveries and RTOs are part of the outbound picture.
What is the difference between inbound and outbound logistics, with examples?: Inbound brings stock in; outbound sends orders out. A truck of 1,200 units from a supplier, counted, recorded on a GRN and put away, is inbound. Picking, packing and handing 450 customer orders to couriers is outbound. Inbound affects what is available to sell; outbound affects how fast and how reliably customers receive what they bought.
What are the inbound processes in a warehouse (receiving, GRN, putaway)?: Inbound starts before the truck arrives, with the purchase order and the supplier's advance shipping notice. On arrival come gate entry and unloading, counting against the PO and ASN, the goods received note, a quality check with damaged items quarantined, and putaway into bin locations. Stock is ready to sell only when putaway is recorded. Supplier deliveries, warehouse transfers and customer returns all come in this way.
What documents are used in inbound and outbound warehouse operations?: Inbound uses the purchase order, the supplier's advance shipping notice and invoice, an e-way bill where one is required, and the goods received note. Outbound uses the order, the pick list, the tax invoice, the shipping label with its AWB, and the shipping manifest signed at courier handover. Returns add a return note and a quality-check record.
What metrics measure inbound and outbound performance?: For inbound: dock-to-stock time, from unloading to stock in a bin, and the receiving match rate, the share of PO lines received with the right item and quantity. For outbound: order cycle time, on-time dispatch rate and RTO rate. Tracking both sides shows whether a late order started at packing or at a slow delivery days earlier.
Where do returns fit: inbound, outbound or reverse logistics?: Returns are reverse logistics: goods moving from the customer back to the brand. Physically, they arrive through the warehouse's inbound process: they are received, checked, recorded and either restocked, sent for repair or written off. Many warehouses run returns at a separate desk, so they don't hold up supplier deliveries.
What is the difference between inbound and outbound freight (carriage inwards and outwards)?: Inbound freight is the cost of transporting goods in from suppliers; accounting textbooks call it carriage inwards and treat it as part of the cost of purchases. Outbound freight, or carriage outwards, is the cost of delivering goods to customers and is treated as a selling expense. How your business books them is a question for your accountant.

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Last reviewed: 5 November 2026 by Fretron.

Sources

Electronic Way Bill in GST (brochure). CBIC, Directorate General of Taxpayer Services, August 2019, hosted by the GST Council. https://gstcouncil.gov.in/sites/default/files/2024-02/electronic-way-bill-050819.pdf (accessed 5 Nov 2026).
Fulfillment by Amazon: Frequently Asked Questions ("How does FBA work?", "Do I need to register Amazon as an additional place of business?"). Amazon.in. https://sell.amazon.in/shipping-and-fulfillment/fulfillment-by-amazon/fba-faq (undated page; accessed 5 Nov 2026).
Sell. Pack. Ship.: fulfillment options for Amazon.in sellers (Easy Ship). Amazon.in. https://sell.amazon.in/shipping-and-fulfillment (undated page; accessed 5 Nov 2026).