Saturday 7 October 2017

The basic components of Distribution Management in logistics

Logistics cover end to end management of the supply chain from packaging to delivery and even returns. Distribution management is an aspect of the supply chain management where an efficient distribution and movement of finished products is the prime goal. Distribution management covers the whole process that takes place from the end of a product line-up until it reaches the consumers.
To top it all, distribution management also covers a wide array of optimisation methodologies and tools to ensure good reach intact and in time. Distribution management covers three main areas which include warehouse management, order fulfilment, and the most crucial transportation management.
Prime aspects of Distribution management

1. Order Fulfilment:

Helping businesses redesign their customer service organisation and its processes are what distribution logistics takes care of. To add up to its services, distribution management also caters to customers’ questions and orders. This, in turn, ensures that the company’s goals are in synchronisation with the client’s central or local customer service organisation.

Market Expectations, performance objectives, and business strategy are some of the main components in business objectives of order fulfilment process. From processing an order by the customer to its delivery, order fulfilment covers the following:
  • Process throughput time: Total time consumption from packaging to delivery.
  • Transaction Efficiency: To ensure that the transaction doesn’t lag anywhere from payment to delivery.
  • Transaction reliability: Proper and reliable payment gateway.
  • Information communication: Timely and accurate communication rendering of the internal and external information.
2. Warehouse management:

Another important aspect of distribution management is warehouse space management. The key points of focus are tracking systems, communication between different product stations and physical warehouse infrastructure of the company. Warehouse management also covers storage and receipt of merchandise in various locations feasible for proper rendering of the logistics process. It takes care of both outbound and inbound processes and even crosses docking. 


3. Transportation Management:

The top priority in transportation management is the well-executed handling of outbound, inbound and internal transportation process. Effective utilisation of a database of partner carriers enables companies to bring proper performance and discipline to transportation management.

While dealing with transportation network design and levelled flow of requirement during transportation, distribution logistics focuses on core carrier programs. Optimisation and overall transportation cost reduction in this aspect of distribution logistics is in constant optimisation.

Distribution management allows merchandise underway to its consumers to be tracked from the source of its packaging to its current location. It also focuses on managing and identifying every cost element associated with the transportation of the product while maintaining safety and timely delivery of the merchandise.

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