In simple terms “logistics” means having the right amount of a good at the right time, getting it to the appropriate location in proper condition and delivering it to the correct customer. Logistics is a web that links to businesses in every industry sector. The goal is to manage the fulfillment of each customer.
To meet every need of the customer it is necessary to have at least one of the different distribution networks. At the same time, the distribution network will adapt to the corporate strategy of the company and the type of good it offers to the market.
While customer service consists of many components, we will focus on those measures that are influenced by the structure of the distribution network. These include:
• Response time
• Product variety
• Product availability
• Customer experience
• Order visibility
There are six different types of distribution network. Each one has advantages and disadvantages, to design a good network of distrubucion we invite you to know more about this subject in the link below.
There are two key decisions when designing a Distribution network:
- Will the product be delivered to the customer location or picked up from a preordained site?
- Will product flow through an intermediary (or intermediate location)?