Distribution planning is the process of determining the most efficient and effective way to deliver

products to customers or end-users. It involves several key activities aimed at optimizing the flow of
goods from the point of production to the point of consumption:
1. Demand Forecasting: Distribution planning begins with forecasting customer demand for
products. This involves analyzing historical sales data, market trends, and other factors to
predict future demand accurately.
2. Inventory Management: Once demand is forecasted, inventory management activities
ensure that the right quantity of products is available at the right locations and at the right
time to meet customer demand. This includes determining optimal inventory levels, safety
stock levels, and replenishment strategies.
3. Warehousing: Distribution planning includes determining the locations and configurations of
warehouses or distribution centers strategically placed to serve customers efficiently. It
involves decisions regarding warehouse layout, storage systems, and material handling
processes to optimize storage space and minimize handling costs.
4. Transportation Planning: Transportation planning involves selecting the most suitable
transportation modes (e.g., truck, rail, air, sea) and routes for moving products from
warehouses or production facilities to customers. It includes considerations such as transit
times, cost-effectiveness, reliability, and environmental impact.
5. Order Fulfillment: Distribution planning encompasses order processing and fulfillment
activities, ensuring that customer orders are received, processed, picked, packed, and shipped
accurately and efficiently. This includes optimizing order picking routes, packaging methods,
and delivery schedules.
6. Reverse Logistics: Distribution planning also includes managing the reverse flow of goods,
such as product returns, repairs, or recycling. This involves developing processes and systems
for handling returned products, managing warranty claims, and minimizing the cost and
environmental impact of reverse logistics activities.