Distribution logistics

Distribution logistics - also called sales or distribution logistics or physical distribution - encompasses all activities necessary to deliver products to the end customer in a targeted, fast and economical manner. It functions as the link between products and sales and includes management and control as well as all decisions and information relating to the distribution process. Distribution logistics is thus a central component of the value chain.

In general, three main tasks can be distinguished:

1. order processing: this operational task refers to the receipt and processing of orders and also deals with the packaging and dispatch of goods.

2. warehouse policy: warehouse policy includes all strategic tasks that focus in particular on warehouse stocks and systems. This includes, among other things, stock policy or the selection of warehouse locations.

3. transport policy: transport policy deals with tactical tasks relating to means and quantities of transport. In this context, the focus is, for example, on whether a lorry or plane is chosen as a suitable means of transport or whether direct or indirect distribution should be considered as a sales channel.

In order to fulfil these tasks successfully, the focus is generally on three goals, one of which is availability. Accordingly, distribution logisticians ensure that sufficient product quantities are available so that customers can obtain the desired goods in a timely manner. Secondly, the focus is on minimising costs. In this respect, it is primarily about reducing costs for shipping and delivery, for example for transport. The third goal is to exert influence, in that distribution logisticians strive for a high degree of co-determination, e.g. regarding the placement of products on the sales shelf.