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Glossary

Distribution logistics

What is distribution logistics? It is the link between a company’s production or warehousing and sales. Distribution logistics, also known synonymously as sales logistics or distribution logistics, manages the various process steps in the transportation of goods to their final destination. This includes all storage, handling and transportation processes of a product after its production until it reaches the customer.

Distribution logistics is responsible for the decisions, information, controls and checks required to get products or merchandise from the company to the customer as quickly as possible – either directly to the customer or via so-called sales warehouse stages. The aim is always to use the most strategically sustainable and effective route, taking into account the needs of the recipient.

Objectives and tasks of distribution logistics

The objectives of distribution logistics include:

  • High availability: The customer should be able to buy and receive products as quickly as possible.
  • Low costs: Expenses for storage and transportation should be kept as low as possible.

In order to achieve these goals, distribution logisticians have to fulfill many different tasks. These include three main areas:

  • Strategic tasks: E.g. location selection, creation of suitable distribution networks, marketing strategy, IT-technical integration of logistics service providers and customers
  • Tactical tasks: E.g. definition of service level, classification of external and own transportation, fleet decisions and minimum delivery quantities
  • Operational tasks: Processing of orders, purchase orders and purchase orders, customer contact and customer loyalty, picking and packing, shipping and route planning

Storage stages of distribution logistics

There are four different types of warehouse levels in distribution logistics:

  • Plant warehouse: The storage location where products are usually temporarily stored by the manufacturer
  • Central warehouse: A collection and sorting center where various products are stored in a single location
  • Regional warehouse: Part of a network for supplying customers – products for defined regions are stored here
  • Distribution warehouse: A regional distribution warehouse close to the customer, which is supplied directly from the production facility and thus has the products permanently available for buyers – this ensures a smooth delivery service and reduces transportation costs

Sustainable distribution logistics

Distribution logistics faces particular challenges in terms of sustainability: Logistics services are among the main sources of climate-related emissions. This makes it all the more important to take appropriate measures to minimise CO2 emissions, conserve resources and treat the environment responsibly.

LGI stands for openness and transparency in supply chain management. With our Green Care concept, we have already implemented numerous sustainable measures – from switching to renewable energies and e-mobility to the use of climate-neutral shipping options.

Distribution logistics with LGI

Order by 10 p.m. and receive it before 12 noon* the next day? We can do that. LGI’s logistics expertise ensures the supply of your sales market – in Germany and around the world. Distribution is often combined with prior warehousing as well as picking, packing and packaging services. We can also take care of this for you.

Our most important services:

*Realised solution for Germany-wide delivery

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