Distribution services include a wide range of activities and all these activities focus on achieving efficient distribution and movement of finished products. This takes goods from the end of a production line to a point where consumers can obtain them.
Different types of distribution:
Full Truck Loads
Less than Truckload – Groupage
Courier – time definite delivery of smaller parcels
Dedicated Closed Distribution
Distribution helps businesses redesign their customer service organization and its processes. It also takes care of customers’ questions and orders. From taking orders to dispatching the merchandise, it also focuses on the following:
- Process throughput time
- Transaction efficiency
- Transaction reliability
- Timely and accurate external and internal information communication
Distribution logistics also brings processes and a certain discipline to transportation management. This is usually achieved by effectively utilizing a database of partner carriers. Within the realm of transportation management, handling outbound, inbound and internal transportation is of utmost importance. This ensures that clients will benefit from stability, visibility and control of their transportation costs and functions.
Distribution Logistics offers businesses several benefits. Some of the advantages it provides include the following.
- Allows goods to be tracked from their source to the present location
- Helps identify every cost element that is associated with the movement of the goods
- Facilitates demand analysis for replenishment planning
- Assists in the formation of sales analysis for market planning
- Helps further cross-reference labelling, contract management and returned merchandise authorization
- Provides an organized shipping system that assists in time and cost-saving