Distribution logistics subsystem
| Distribution logistics subsystem |
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| See also |
Logistic activities in the area of distribution is related to the market. This includes all tasks associated with the supply of products directly from the manufacture, sales from warehouses or from other regional dispatching centres.
Typically, this stage flows already applies to final products, but different situations can be identified such as: transport by specialized distribution logistics service provider, installation of product, servicing.
Problems of distribution logistics
Decisions taken in the field of distribution logistics are dependent on:
- Product Policy - especially taking into account the range of products, product development, handling, storage and warranty and post-warranty service,
- Terms of delivery policy - price level, division of obligations concerning the delivery of products to buyers, applicable discounts (volume and value)
- Communication policy - assumptions regarding advertising, promotion and direct sales, public relations
- Distribution policy - especially related to the organization of distribution channels, sales tasks carried out independently or by freelance intermediaries, level of supplier service.
Regional distribution centre in distribution logistics subsystem
Regional distribution centre is an independent economic entity, which collects and stores the final products or components, of one or more producers, in order to redistribute them to dealers, importers, partner companies or other subordinate entities.
We can distinguish three main stages of the logistics process that is implemented through the RDC:
- input – covers the planning and ordering of supplies, receiving deliveries and unloading,
- internal product management - involving the relocation of the resulting supply in the distribution centre,
- output - the acceptance of the order, organization and preparation of transport.
Benefits of regional distribution centres
Main benefits of RDC use:
- improving the quality and on-time deliveries
- increase the availability of goods, which means, simultaneously, raising the level of customer service
- improved process control of product movement within the supply chain
- cost reduction
References
- Farahani, R. Z., Asgari, N., & Davarzani, H. (Eds.). (2009). Supply chain and logistics in national, international and governmental environment: concepts and models. Springer Science & Business Media.
- Magee, J. F., Copacino, W. C., & Rosenfield, D. B. (1985). Modern logistics management: Integrating marketing, manufacturing and physical distribution (Vol. 22). John Wiley & Sons.
- Oum, T. H., & Park, J. H. (2004). Multinational firms’ location preference for regional distribution centers: focus on the Northeast Asian region. Transportation Research Part E: Logistics and Transportation Review, 40(2), 101-121.
- Poist, R. F. (1989). Evolution of conceptual approaches to the design of logistics systems: a sequel. Transportation Journal, 35-39.
- Rushton, A., Croucher, P., & Baker, P. (2014). The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.
- Rutner, S. M., Gibson, B. J., & Williams, S. R. (2003). The impacts of the integrated logistics systems on electronic commerce and enterprise resource planning systems. Transportation Research Part E: Logistics and Transportation Review, 39(2), 83-93.
