Why and what of distribution logistics
Logistics is a science that is primarily concerned with management of constant supplies at the point of consumption from the point of production making optimum use of the available resources. The concept evolved during the 2nd World War to help allied forces by maintaining the supplies of men and material along the battle lines while trying to disrupt the ration supplies of the enemy forces. There are several aspects of logistics including warehouse management, distribution, and transport.
Distribution logistics concerns itself with delivery
Procuring the finished products and taking them to the end point of the consumer is the major motive of distribution logistics. How to make this movement of goods from the point of production to the point of the consumer in the least possible cost and the most efficient manner is what this science is all about. Logistics has today become a crucial requirement for all companies to be cost effective in maintaining the supply lines and completing processing of orders, warehousing, and transportation of finished goods in the most efficient and reliable manner.
Distribution logistics depends upon order fulfillment
Those who know that timely distribution of products requires taking in of orders and completing them in an orderly manner pay attention to order fulfillment before taking care of warehousing and the transport to the end of the consumer. Processing of orders takes center stage here so as to make sure that orders arriving earlier are completed first so that there is no delay in supplying the orders to the customers.
Warehouse management and distribution logistics
Warehouse management happens to be of crucial importance in the chain of distribution logistics. It encompasses the activities pertaining to physical storing of products and maintaining the infrastructure to the systems developed to track movement as well as communication between employees in the warehouses and workstations. Warehouse management should be such that products are not stocked for anymore length of time than may be required for their timely pickup and delivery to the end consumer.
Warehouse management has today become a full fledged science with mangers knowing how to control the movement and storage of the goods inside the warehouse in the most efficient manner so as to cut down on the costs of storage and transportation of the goods. These days there is a lot of talk of the revolutionary Just in Time concept that does away with the requirement of warehouses by completion of orders and transportation in a streamlined manner. However, the practicality of JIT is under the scanner and it has been found that a better warehouse management is the answer to the problem of escalating distribution costs. Better warehouse location and making a dual use of the facility for both storage as well as distribution point has been proved to be very efficacious in improving the efficiency of distribution logistics.
Distribution logistics is crucial to reduce overall costs involved
There can be no gain saying the fact that the cost of storing and finally taking the finished goods to the end consumer are increasing with every passing day and it has become a challenge for the logistics managers to keep the warehousing and transportation costs to the minimum to keep the total investment down. All manufacturers around the world are today grappling with the problem of order processing, warehousing and transport in order to keep the overall costs down so that they stay ahead of the completion keeping their profit margins better.
Distribution logistics do not work in isolation
It is very well known that distribution logistics are just a part of the overall logistics solution required by a company as there also many other crucial aspects of logistics. However, because of involvement of warehousing and transport, distribution logistics assumes great significance and its scientific management is essential to cut down on overall logistics costs of the company. It is imperative for the success of an efficient logistics solution to coordinate all aspects of logistics in a better manner.
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