Table of Contents
- Definition and Scope
- History and Evolution
- Key Concepts
- Strategic Planning
- Operations and Implementation
- Technology in Logistics
- Case Studies
- References
Definition and Scope
Distribution and logistics are the processes that move goods and services from suppliers to customers. They cover:
- Transportation of goods across different modes (road, rail, sea, air)
- Warehouse and inventory management
- Order fulfillment and delivery to end‑customers
- Information flow and coordination among supply chain partners
History and Evolution
Initially focused on raw material movement, logistics has expanded into complex supply chain integration. Milestones include the rise of containerization, the development of the first logistics management systems, and the growth of global e‑commerce.
Key Concepts
Supply Chain vs. Logistics
Supply chain is the entire network from raw material to customer, while logistics focuses on the movement and storage within that network.
Transportation Modes
Road, rail, sea, and air are the main modes, each chosen for cost, speed, and capacity.
Warehouse Management
Involves receiving, storing, picking, packing, and shipping, often coordinated by a Warehouse Management System (WMS).
Inventory Management
Includes safety stock, reorder points, and demand forecasting to balance service with cost.
Order Fulfillment
The process of picking, packing, and delivering customer orders.
Last‑Mile Delivery
The final delivery step to the end customer, often the most expensive and time‑consuming.
Technology Adoption
Transportation Management Systems (TMS), Enterprise Resource Planning (ERP), Internet of Things (IoT), and AI have modernized logistics.
Strategic Planning
Network Design
Determines the location and size of facilities and the selection of transportation routes.
Risk Management
Strategies include diversification of suppliers, building safety stock, and scenario planning.
Cost Analysis
Comprehensive cost models account for fuel, labor, maintenance, and equipment.
Service Level Agreements
Defines the speed and reliability expected in delivery.
Operations and Implementation
Transportation Management
Route planning, carrier selection, load optimization, and performance monitoring.
Warehouse Operations
Involves receiving, sorting, storing, picking, packing, and shipping.
Order Fulfillment
Includes picking, packing, labeling, and shipping of customer orders.
Last‑Mile Logistics
Challenges in urban areas have spurred innovations such as crowd‑shipping, smart lockers, and autonomous delivery.
Technology in Logistics
Enterprise Resource Planning (ERP)
Integrates financial, operational, and logistical data across an organization.
Transportation Management Systems (TMS)
Automates carrier selection, rate negotiation, shipment execution, and performance analysis.
Warehouse Management Systems (WMS)
Controls warehouse activities and ensures accurate inventory tracking.
Internet of Things (IoT)
Real‑time monitoring of shipment conditions and asset status.
Artificial Intelligence (AI)
Optimizes routes, predicts demand, and automates warehouse tasks.
Case Studies
Global Electronics Supplier
Implemented a cross‑dock system, reducing inventory carrying costs by 15% and improving order cycle time.
Retailer with Omnichannel Fulfillment
Installed micro‑fulfillment centers in urban areas, enabling same‑day delivery for 80% of orders.
Pharmaceutical Distributor
Used IoT sensors and blockchain to maintain the cold chain, lowering spoilage by 30%.
Emerging‑Market Logistics Provider
Partnered with local operators to create an integrated last‑mile network, reducing delivery time by 25%.
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