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Definition of distribution logistics

From the producer to the customerThe focal point of distribution logistics is the shipment of goods from themanufacturer to the consumer. Here is an example: In the early morning, amajor supermarkets own truck delivers fresh supplies to replenish those thatwere sold on the previous day right to the loading ramp - all pre-picked for theretail outlets. At the same time, the specialty-food retailer next door is buyinggoods for that particular day from the wholesaler. Distribution logisticsaddresses these types of deliveries and others as well. In the process,distribution logistics covers much more than the simple shipment of a productfrom Point A to Point B.

Concept and scope of distribution logisticsDistribution logistics comprises all activities related to the provision of finishedproducts and merchandise to a customer. The products can be delivereddirectly from the production process or from the traders stock located close tothe production site or, possibly, via additional regional distribution warehouses. Like procurement logistics, distribution logistics is a market-linked logisticssystem. It links a companys production logistics with the customersprocurement logistics.In distribution logistics, customer orientation plays a special role because ofthe close link to the customer. Workers in a distribution center frequently havemore contact with the customer than sales representatives do. The tremendous significance of service thinking in distribution logistics arisesfrom this customer orientation. The aim is to constantly search for innovativeways that offer the customer improved logistics solutions. In the process,special requirements are being made as the traditional marketing principle ofproduce in a market-focused manner is being replaced by the future-orientedmarketing principle of sell first, produce later. Furthermore, service isincreasingly being provided to the customer in a multi-faceted way based onthe principle of just for you. Both trends require a great amount of servicespeed and flexibility [1].

Marketing with a delivery service

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Allocation of distribution logistics within the logistics system of an industrialcompany

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If the delivery service is considered to be an instrument of marketing strategy,interdependencies with other instruments must be considered. This is becausethe instruments used in marketing strategy have an effect on the customer onlywhen combined with the marketing mix . Information about the currentinterdependencies will be provided in later articles about distribution logistics.In the process, marketing instruments are combined into tools of productstrategy, contract policies or terms & conditions, communications strategy anddistribution strategy [1].

Recommended readingPurchasing and Supply Chain Management | Quayle 2006Logistiksysteme | Pfohl 2004Fundamentals of Logistics Management | Grant / Lambert / Stock / Ellram2005

References[1] Logistiksysteme | Pfohl 2004

Related articlesProcurement logistics

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