Definition of distribution logistics From the producer to the customer The focal point of distribution logistics is the shipment of goods from the manufacturer to the consumer. Here is an example: In the early morning, a major supermarket’s own truck delivers fresh supplies to replenish those that were sold on the previous day right to the loading ramp - all pre-picked for the retail outlets. At the same time, the specialty-food retailer next door is buying goods for that particular day from the wholesaler. Distribution logistics addresses these types of deliveries and others as well. In the process, distribution logistics covers much more than the simple shipment of a product from Point A to Point B. Concept and scope of distribution logistics Distribution logistics comprises all activities related to the provision of finished products and merchandise to a customer. The products can be delivered directly from the production process or from the trader’s stock located close to the production site or, possibly, via additional regional distribution warehouses. Like procurement logistics, distribution logistics is a market-linked logistics system. It links a company’s production logistics with the customer’s procurement logistics. In distribution logistics, customer orientation plays a special role because of the close link to the customer. Workers in a distribution center frequently have more contact with the customer than sales representatives do. The tremendous significance of service thinking in distribution logistics arises from this customer orientation. The aim is to constantly search for innovative ways that offer the customer improved logistics solutions. In the process, special requirements are being made as the traditional marketing principle of “produce in a market-focused manner” is being replaced by the future-oriented marketing principle of “sell first, produce later.” Furthermore, service is increasingly being provided to the customer in a multi-faceted way based on the principle of “just for you.” Both trends require a great amount of service speed and flexibility [1]. Marketing with a delivery service DHL Logbook - in cooperation with Technical University Darmstadt Allocation of distribution logistics within the logistics system of an industrial company 1 / 2
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
DHL Logbook - in cooperation withTechnical University
Darmstadt
Allocation of distribution logistics within the logistics system
of an industrialcompany
1 / 2
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
