DHL Logbook - in cooperation with Technical University Darmstadt

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 supermarkets 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.

Allocation of distribution logistics within the logistics system of an industrial company

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 traders 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 companys production logistics with the customers 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

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DHL Logbook - in cooperation with Technical University Darmstadt

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

Recommended reading
Purchasing and Supply Chain Management | Quayle 2006 Logistiksysteme | Pfohl 2004 Fundamentals of Logistics Management | Grant / Lambert / Stock / Ellram 2005

References
[1] Logistiksysteme | Pfohl 2004

Related articles
Procurement logistics

URL
http://www.dhldiscoverlogistics.com/cms/en/course/processes/distribution_logistics/definition. jsp

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