What happens in distribution logistics?

Distribution logistics focuses on the optimal delivery of products to customers. It covers all activities related to the movement of goods from the finished goods warehouse to the market, including direct deliveries or shipments via distribution center networks. It also considers the associated information flows.

Main objectives

The key objective of distribution logistics is the fastest possible delivery of goods while maintaining high availability and minimal cost. This is achieved through strategic, tactical, and operational measures.

Example: For Amazon to offer its Prime express delivery service across Germany, it must maintain multiple warehouses stocked with a wide assortment of products, along with the necessary IT infrastructure and shipping capacity. Strategic decisions also include whether to operate a private delivery fleet or outsource logistics.

Tactical aspects involve order minimums, shipping zones, and delivery speed.
Operational factors include intra- and extralogistics processes, WMS selection, picking methods, and shipping workflows.

Distribution channels

• Direct distribution: used by companies like Vorwerk or Bofrost, where the company communicates directly with customers.
• Indirect distribution: involves intermediaries (e.g., wholesalers or retailers) handling inventory, consulting, and sales.

Importance in logistics

Especially in e-commerce, the demand for speed, availability, and free returns is extremely high.
A smart warehouse management system (WMS) supports the process but must be paired with optimized logistics infrastructure, shipping power, warehouse locations, and production volume to be fully effective.