Tuesday, March 8, 2011

The Distribution Activity

Distribution is the activity that is concerned with:

  • receiving parts or finished goods
  • storing them until they are required
  • delivering them to the customer

The distribution activity consists of several functions

  • inventory management
  • warehousing
    • receiving goods
    • storing goods
    • preparing goods for reshipment
    • dispatching
  • materials handling
  • transportation
    • planning
    • booking
    • tracking and tracing
    • administration:
      • order processing
      • documents
      • customs

Lead time reduction can be achieved in several domains:

  • information systems
  • communication systems
  • distribution network design
  • transportation modes
  • combination of shipments

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