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inbound

 and 

outbound logistics

 (Figure 6.2). Logistics is essential to the efficient manage‑

ment of the supply chain.

To understand why supply chain management plays an important role in modern man‑

agement thinking, read Box 6.3.

Inbound logistics

The management of 

material resources 

entering an organisation 

from its suppliers and 

other partners.

Outbound logistics

The management of 

resources supplied 

from an organisation 

to its customers and 

intermediaries.

Box 6.3

Developments in supply chain management

In order to understand how e‑commerce can be used to enhance supply chain and 

logistics management it is useful to consider the historical context of management 

approaches to supply chain management and how information systems have been 

used to support them. The following stages can be identified.