Distribution logistics are critical in the ecommerce supply chain from marketing to delivery. An online business’s distribution is its beating heart. It would be difficult to consistently deliver and satisfy consumer expectations without it.
To get distribution correct, it’s mostly a balancing act. For one thing, you’ll need adequate inventory to match demand while also minimizing storage space costs.
There is an art and science to creating a physical distribution process. And, as we’ve seen from the epidemic, you can’t predict the future, making optimizing distribution logistics based on demand difficult.
Distribution logistics, as a whole, aims to minimize risk and costs by creating a more resilient supply chain – no matter what problems you encounter.
Let’s go deeper into the topic of distribution logistics, how to optimize it, and what to think about as the supply chain continues to struggle with delays and disruptions.
What is distribution logistics?
Depending on the sector, distribution logistics might mean a variety of things.
It may refer to the entire process of receiving finished goods directly from a manufacturer or supplier to a retailer or distribution centers, as it does for direct-to-consumer (DTC) enterprises.
Orders are then processed for last-mile delivery from there. Online companies will collaborate with a variety of transportation partners to make sure items arrive on time and at the lowest possible price during the distribution phase.
What is a sales logistician?
The designer of the sales logistician’s role is called a logistician. The sales logistician is in charge of logistics sales and ensures that orders are correctly filled and sent on time.
The goal of the role is to forecast consumer demand, which entails the procedure of predicting demand so that e-commerce companies and their logistics executives can prepare logistics processes like product procurement, warehousing receiving time frames, and inventory replenishment.
A sale logistician, in essence, is a liaison between the company and third-party logistics to ensure that distribution is done in the most cost-effective and efficient manner possible.
Direct vs. indirect distribution
Depending on the demands of the organization, a distribution logistics approach might include many channels.
Direct and indirect distribution logistics are two alternatives for ecommerce businesses when it comes to distributing their products.
Direct distribution
By taking on distribution management in-house, cutting out the middleman entirely is known as direct distribution.
The consumer is then free to browse the online store and buy whatever they wish. When it comes time to purchase, an order will be placed with the internet retailer who either rents a warehouse or fulfills purchases from an office or at home.
An online retailer is responsible for the distribution process as well. They’ll have to spend money on their own inventory management software so they can keep track of everything, from pipeline inventory to items that are being delivered.
Amazon is also involved in the decision-making process when it comes to shipping methods and transport partners.
Brands that take care of their own distribution logistics are obligated to invest in their own storage infrastructure, fill customer orders in-house, and maintain carrier partnerships for delivery.
Indirect distribution
DTC companies may outsource fulfillment to a third-party logistics provider through indirect distribution.
Indirect distribution entails shipping inventory to a 3PL service that handles storage, picking and packing, and delivery on behalf of the e-commerce firm.
The 3PL provides the resources, tools, knowledge, and customer service needed to optimize logistics operations without requiring merchants to invest in their own fulfillment infrastructure or warehouse management system (WMS).
After orders are placed, they are sent to the fulfillment center with the best shipping route.