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.

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,

# Reasonableness of cost # Safety and legal requirements , # Timely deliveries

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.

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.