Distribution logistics (also known as transport logistics or sales logistics) is the link between

production and the market. The area comprises all processes involved in the distribution of goods -
from manufacturing companies to customers. Customers are either final customers, distributors or
processors. In concrete terms, distribution logistics includes goods handling, transport and interim
storage. This makes the subject a central component of extra logistics and closely links it with
packaging technology (after all, packaging must be adapted to transport requirements in order to
be able to deliver the product safely). Sustainably structured information, decision-making and
control processes are essential for implementing successful transport logistics.

Objectives of distribution logistics

An important question of sales logistics is: Which distribution channels (or modalities) do I use to
transport my goods? Either water (ship), rail (train), road (truck) or air (airplane).

An important question of sales logistics is: Which distribution channels (or modalities) do I use to
transport my goods? Either water (ship), rail (train), road (truck) or air (airplane).

(Source: CC0)

The following guiding principle illustrates the key objectives of sales logistics: “The right objects
must be available to customers in the right quantity at the right time with the right information at
the right cost in the right place with the right quality.”

Distribution logisticians essentially pursue three goals:

1. Availability: They must always ensure that a sufficient quantity of products is available to
customers. Customers should be able to receive goods promptly and without great effort.

2. Cost minimization: High quality demands of the manufacturers require sales logisticians to keep
shipping and delivery costs as low as possible. In concrete terms, the aim is to reduce costs
associated with transport, storage, shortage and order processing. At the same time, however,
delivery is to become faster, more energy-efficient and more environmentally friendly.

3. Influence: Distribution logisticians want to have the highest possible say in the marketing of
their products, for instance. It is about answering the questions of “How are my products placed
on the sales shelf?” and “How can I stand out from the competition with the presentation of my
goods?”.

Sales logisticians also have to optimize their logistics services: Delivery reliability, delivery
flexibility, delivery time and delivery condition should meet high quality demands. Only then are
customers at the end of the supply chain satisfied and will use the service again.

Tasks of sales logistics

Transport logistics comprises three fields of activity:

1. Operational control: Operational tasks refer to the processing of orders, shipping, returns
management, route planning and customer service.

2. Tactical control: Tactical tasks include fleet management, defining minimum purchase
quantities, defining a service level and deciding whether the company should manage transport
logistics on its own or resort to external providers.

3. Strategic control: Strategic tasks include the planning of marketing strategies, the development
of distribution networks, the choice of location and both horizontal and vertical networking.