The logistics section, which is responsible for the distribution of material flow between the respective retail customers, is called distribution logistics. It covers many interconnected systems: warehousing, transportation, marketing and others. Its fundamental function is the winning, best distribution, which consists in the correct forwarding and efficient cargo handling. However, the implementation of this function is impractical without determining consumer demand and the proper organization of its satisfaction. Thus, distribution logistics is planning and control over the movement of goods to places of consumption (including to the consumer) with minimized costs.
The main stages of this industry consist, firstly, of the distribution of orders when purchasing goods between suppliers. Secondly, from the planning and control of goods and their delivery directly to places of storage upon arrival at the destination. Thirdly, distribution logistics consists in disbanding stocks of goods between production sites and tracking material flows in the sales process.
The movement of the latter occurs through logistic channels. They mean numerous participants in the process, which begin with the manufacturer and end with the buyer. In addition, the participants in the distribution channel are wholesale firms and, of course, retail enterprises. All of them are actively involved in product distribution. They act as intermediaries and are useful for both the first link and the last.
Distribution logistics involves several types of intermediaries. Dealers - these include wholesale intermediaries that carry out various operations with the goods at their own expense and directly on their behalf. Distributors are intermediaries who can be both wholesale and retail, and make transactions on behalf of the manufacturer, but at the same time, at their own expense. Brokers play an exclusively intermediary role, they are not the owners of products and services and have no right to dispose of them. Agents - representatives and assistants of another person. In making the choice of wholesale intermediaries, manufacturers take into account a number of factors, which include intermediary interest, knowledge of the goods offered, third party reliability, and much more.
Distribution logistics as the ultimate goal has the creation of conditions for the meeting of the buyer with the desired product or service. It should be understood that in this industry some new values of the material plan are not being formed, but unique services are being produced, where on the one hand the producers themselves are consumers, on the other hand, are the buyers of the goods.
In addition, distribution logistics is a functional area of macro and micro logistics. At the micro level, she studies the movement of flows that are organized within enterprises of the necessary sphere. There is a process of optimization of the operations of receiving and processing orders, delivery to the designated place and the organization of after-sales service. At the macro level, the development of logistic channels and their links along which goods distribution is provided. Tasks aimed at improving the efficiency of the movement of flows are being solved, the development of new ways is being studied, i.e. formation of logical circuits based on distribution channels.
Thus, this type of logistics is inextricably linked with the mission of the enterprise. In the event that the goals of the manufacturer are determined, then it is aimed at their implementation, providing the necessary quality of product distribution, using resources as efficiently as possible.