The root of effective supply chain management lies in managing the logistics well and dealing with them in an effective and efficient manner. The implementation of all plans should be quick and such that the flow of distribution is dealt with correctly, whatever its nature. It can either be the forward flow or the reverse flow. (James, 1994)When it comes to business, there can be two kinds of logistics, based on the kind of focus that they have. They are inbound logistics and outbound logistics. Both of them cannot be done in isolation, though many businesses are treating them as separate fields and areas. The challenge that every business has to face now is to do the planning of inbound logistics, keeping in consideration the volumes that outbound transportation brings which ultimately helps in accelerating the level of collaboration, coordination and consolidation that one expects should be the result of logistics management. (Pegels, 2005)The first kind is that of inbound logistics, which has an internal focus. It is also known as physical supply. It deals with the procurement process which is external and which occurs in a series of steps as soon as the goods are received. As far as transportation planning is concerned, the concept of inbound logistics has gained wide acceptance and has become the major process within this domain. (Brindley, 2004)There are five business processes involved in inbound processing. The inbound logistics process starts when there is a receipt of goods, which is basically a requirement to a purchase that has been made from a company. it can be called a follow-up activity. The finances of the company, as well as the figures for the inventory, are updated. And therefore, it encompasses the services of warehouse management and quality management.