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
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