Sales logistics, also known as distribution logistics, or transport logistics involves the planning and control of the movement of goods. It is an inter-organizational logistics system that includes forecasting demand, ordering inventory from suppliers, and making sure that products are delivered to customers on time for distribution or retail sales.
Sales logistics deals with the necessary processes involved in getting a company’s products to the customer as quickly and as effectively as possible. The aim of this is to create an efficient logistics channel from the supplier to the customer. Sales logistics is the link between production and sales in a company. It includes all the handling, storage, and transport processes of goods from production to the customer.
Distribution or sales logistics is divided into the following task categories: strategic, tactical and operational tasks.
· Strategic tasks refer to the planning of marketing strategies, choice of location, development of distribution networks, as well as horizontal and vertical networking.
· Tactical tasks include fleet management, defining minimum purchase quantities, defining a service level and deciding whether the company should manage transport logistics on its own or resort to external providers.
· Operational tasks refer to the processing of orders, shipping, route planning, returns management, and customer service.
The following are some modern trends in sales logistics:
§ Self-driving means of transport
§ Increased quality requirements
§ Energy efficiency
§ Sustainability and environmental protection
Variants of sales logistics.
Companies can choose between the following two distribution variants: direct and indirect distribution.
Direct distribution involves the direct contact between the manufacturer and the customer, while indirect distribution involves the handling of sales via intermediaries. The direct distribution variant is used for products with characteristics such as narrow customer base, high sensitivity, and high complexity.
Manufacturers have the following options open to them in choosing a distribution channel:
Direct sales for expensive products involve a lot of explanation to the customer.
Retail trade for goods that require intensive consultancy, with the potential of reaching and addressing a broad audience.
Wholesale for the sale of large quantities of goods. With the wholesale option, manufacturers usually generate significantly higher sales volumes than in the retail sector, but also with significantly lower profit margins on each product.
Online trade. E-commerce is growing rapidly with digitization and presents the industry with completely new challenges, such as same-day delivery.
Be sure to partner with AMG Logistics to take care of all your logistics needs