Distribution logistics includes a wide range of activities. These all focus on achieving efficient distribution and movement of finished products. This takes goods from the end of a production line to reach consumers.
Aside from that, it provides a wide set of optimization methodologies and tools. These are all used in three main areas that include warehouse management, order fulfillment and transportation management.
Distribution logistics helps businesses redesign their customer service organization and its processes. At the same time, it takes care of customers’ questions and orders. This will make sure that clients’ central or local customer service organizations will be in line with their company’s goals.
Some of the components included in business objectives are market expectations, performance objectives and business strategy. From taking orders to dispatching the merchandise, it also focuses on the following.
· Process throughput time
· Transaction efficiency
· Transaction reliability
· Timely and accurate external and internal information communication
Another area of expertise in distribution logistics is warehouse management. This involves focusing on tracking systems, communication between product stations and physical warehouse infrastructure. It also deals with the storage and receipt of merchandise in different locations. This includes outbound distribution management centers, inbound warehouses and cross docking.
It also focuses on providing value-added services and internal conveyance. This includes kitting, light manufacturing processes and sequencing. Facilities are also utilized with an endless pursuit for continuous improvement. It will eventually result in space requirement reduction, facility cost decreases and overall supply chain stability. Services are also improved with a culture of operational excellence.
A warehouse concept that is well-planned out will provide several benefits. It will optimize workforce efficiency and increase the throughput time. Material handling equipment will also be improved. This will also help clients define their warehouse organization and includes required information system and physical structure support.
Distribution logistics also brings processes and discipline to transportation management. This is usually done by effectively utilizing a database of partner carriers. It also enables companies to build the most optimal transportation approach for their business.
In transportation management, handling outbound, inbound and internal transportation is prioritized. This ensures that clients will benefit from stability, visibility and control of their transportation costs and functions.
Transportation management also focuses on core carrier programs. At the same time, it deals with transportation network design and the leveled flow of requirements for transportation. Its relentless focus on continuous improvement will ultimately result in high quality of service, transportation optimization and overall cost reduction.
Distribution Logistics offers businesses a number of benefits. This is especially true when it is used optimally in a merchandise dispersion approach. Some of the advantages it provides include the following.
· Allows merchandise to be tracked from its source to the present location
· Helps identify every cost element that is associated with the movement of products
· Facilitates demand analysis for replenishment planning
· Assists in the formation of sales analysis for market planning
· Helps further cross reference labeling, contract management and returned merchandise authorization
· Provides a very organized shipping system that assists in time and cost saving
· Helps provides order fulfillment flexibility using unparalleled resources for multi and single site operations