Chapter 7 Distribution     

7.5 Distribution Activities

Distributionfor goods is one of the core logistics operations. In practice, the logisticsdistribution mode varies with operator, nature of product, location, and otherfactors. In general, a typical distribution center may execute the followingoperations activities in the process:

(1) Stock-up

Stock-upof goods is the preparative work prior to distribution, and may includesourcing, ordering, purchasing, gathering, replenishing of goods and therelated procedures, such as quality inspection, settlements of accounts,handover, etc.

(2) Storage

Storagein the distribution process has two forms: reserves and put-away. Reserve indistribution constitute a guarantee for the distributed resources according tothe operation requirements in a certain period. Another form of storage isput-away, which, after the picking/groupage operation, forms temporary storagefor the rhythms of groupage and delivery. Put-away does not last long.

(3) Processing

Processingin distribution generally refers to the reprocessing, as per sales requirements,of finished or semi-finished products ready for distribution, includingsegmentation, separate packaging, selection, promotional and labeling. Theprocessing operation completed, the goods are ready for distribution.

(4) Picking and groupage

Pickingand groupage is a unique functional element of distribution which is distinctfrom other logistics forms. It is also one of the supportive tasks vital to thesuccess or failure of distribution. Where there is picking and groupage, therewill be marked improvement of the delivery service levels. Picking and groupageis the key element to determine the level of the entire distribution system.

(5) Multi-part loads

Occasionally,the distribution volume of a single customer cannot reach the full payload ofthe delivery vehicle, which means there is need for the operator to makegroupage load for goods from various customers, so that full use can be made ofthe transport capacity. This is called multi-part loads.

(6) Shipment in distribution

Shipmentin distribution is a form of tail end transport usually over a shorter distancein a smaller scale and with road vehicles as its carriage tool.

(7) Delivery service

Shipmentof goods to the user does not mean the completion of distribution, becauseinconsistency occurs from time to time between delivered goods and the user’sreceipt of goods. This may reduce the previous effort to a total failure. Inorder to fulfill secured handover of the delivered goods, the distributionstaff should handle handover and receipt formalities of the goods, completesettlement of accounts if necessary, listen to customer’s feedback on serviceand report to the distribution manager that distribution task is completed.