Distribution Logistics.
Distribution logistics is related to the function that allows the transfer of the final products (either goods or services) and makes them available to the customer.
The physical distribution and its functions:
In order for the physical distribution to fulfill its main objective (the physical transfer of the product from the factory to the final consumer) it has to carry out a series of functions:
Estimation of demand. The distribution logistics will be effective if it makes available to the market the products that it demands, in the precise moment and quantity.
• Processing of orders. It refers to the set of activities relating to the processing of purchase orders.
• Warehouse management. It is essential to keep a check of the entrances and exits of the products in the warehouse.
• Packaging. It is the procedure for the conservation and protection of products.
• Transport of the product. This function includes the loading and unloading of the same, as well as the route plan to start to move it to its destination.
• Collection management. Determine the people who will attend the customer, while they deliver the product and proceed to collect it.
By way of summary, we can point out that the main stages in the physical distribution chain are the receipt of the product made by the manufacturer, the inspection function, the transport chain, storage and delivery to the customer.
In order for the logistics function to be efficient, it is necessary to ensure that the lowest possible costs are derived in each of the mentioned phases.
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