Distributional logistics
August 29, 2008
Distributional logistics represents the flow of final products from producer to the customer. Basic guidance is satisfied customer. That can only be achieved if the products reach the customer at the right time, at a right place, in the correct quantity and in proper quality. On the other hand costs for supplier must be acceptable.
Quality parameters for successful delivery are:
- Delivery time
- Supplier reliability
- Service quality
- Information support
Working process of distributional logistics includes:
- Warehousing of final products
- Outer transport
- Inclusion of forwarding agents in transport
- Manipulative operations
- Administrative work
From the aspect of goods flow, distributional logistics can be divided into two equivalent functions:
Distributional canals include marketing accession of transport route planning, while physical distribution includes all manipulations and physical events on the transport route from producer’s warehouse to the final destination. These are: taking over the goods, warehousing, commissioning, packing, labeling, preserving and delivery to the final customer.
Efficiency of distributional logistics depends on various subjective and objective factors:
Delivery time depends on:
- Flow of order from customer to producer
- Order handling and collecting the products
- Consignment preparation and loading
- Transportation time to the final customer
Transportation time depends on:
- Selection of transport mode
- Selection of transport route
- Development of transport infrastructure
When company enters on global market this also influences on its distributional logistics. Global trade requires excellent knowledge of regulations and standards of many foreign countries. Distributional logistics which operates on global market must reach proper volume of goods in order to satisfy its expectations and make profit. For low quantities of goods, it is very hard to reach advantageous costs and organization.
