How Does Logistics Differ From Distribution?

Logistics involves the planning, design, coordination, management and improvement of the processes of moving goods and resources. In some cases, logistics involves more internal systems, while in others it involves collaboration with distribution partners. This is a difference, because distribution inherently includes more than one channel partner.

A logistic family is a set of products which share a common characteristic: Singh, Supply Chain Management Systems:

The logistic distribution receives its name from its cumulative distribution function (cdf), which is an instance of the family of logistic functions. The cumulative distribution function of the logistic distribution is also a scaled version of the hyperbolic tangent.
Definition of distribution management: The management of resources and processes used to deliver a product from a production location to the point-of-sale, including storage at warehousing locations or delivery to retail distribution.
Logistics involves the planning, design, coordination, management and improvement of the processes of moving goods and resources. In some cases, logistics involves more internal systems, while in others it involves collaboration with distribution partners. This is a difference, because distribution inherently includes more than one channel partner.
Distribution and logistics management is a critical company function. Professionals in this field play a key role in fulfilling customer demands, ordering and managing inventory, controlling inbound and outbound shipments, reducing costs, saving time, and meeting company objectives.
Logistics involves the planning, design, coordination, management and improvement of the processes of moving goods and resources. In some cases, logistics involves more internal systems, while in others it involves collaboration with distribution partners. This is a difference, because distribution inherently includes more than one channel partner.

Definition of distribution management: The management of resources and processes used to deliver a product from a production location to the point-of-sale, including storage at warehousing locations or delivery to retail distribution.

Digital logistics is driven by a new generation of web-based, enterprise logistics applications that enable collaboration and optimization, leveraging a central logistics information backbone that provides visibility across the enterprise and extended supply chain. In military science, maintaining one's supply lines while disrupting those of the enemy is a crucial—some would say the most crucial—element of military strategy , since an armed force without resources and transportation is defenseless.

The historical leaders Hannibal , Alexander the Great , and the Duke of Wellington are considered to have been logistical geniuses: Alexander's expedition, the longest military campaign ever undertaken, benefited consiberably from his meticulous attention to the provisioning of his army, [10] Hannibal is credited to have "taught logistics" to the Romans during the Punic Wars [11] and the success of the Anglo-Portuguese army in the Peninsula War was the due to the effectiveness of Wellington's supply system, despite the numerical disadvantage.

Militaries have a significant need for logistics solutions and so have developed advanced implementations.

Integrated Logistics Support ILS is a discipline used in military industries to ensure an easily supportable system with a robust customer service logistic concept at the lowest cost and in line with often high reliability, availability, maintainability, and other requirements, as defined for the project. In military logistics , logistics officers manage how and when to move resources to the places they are needed.

Supply chain management in military logistics often deals with a number of variables in predicting cost, deterioration, consumption , and future demand. The United States Armed Forces ' categorical supply classification was developed in such a way that categories of supply with similar consumption variables are grouped together for planning purposes. For instance, peacetime consumption of ammunition and fuel will be considerably lower than wartime consumption of these items, whereas other classes of supply such as subsistence and clothing have a relatively consistent consumption rate regardless of war or peace.

Some classes of supply have a linear demand relationship: Other classes of supply must consider a third variable besides usage and quantity: As equipment ages, more and more repair parts are needed over time, even when usage and quantity stays consistent.

By recording and analyzing these trends over time and applying them to future scenarios, the US Armed Forces can accurately supply troops with the items necessary at the precise moment they are needed. The lack thereof can lead to a clunky, slow, and ill-equipped force with too much or too little supply. One definition of business logistics speaks of "having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer".

The term " business logistics" has evolved since the s [16] due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for professionals called "supply chain logisticians". In business, logistics may have either an internal focus inbound logistics or an external focus outbound logistics , covering the flow and storage of materials from point of origin to point of consumption see supply-chain management.

The main functions of a qualified logistician include inventory management , purchasing , transportation , warehousing , consultation, and the organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions to coordinate resources in an organization. There are two fundamentally different forms of logistics: There may be some intermediaries operating for representative matters between nodes such as sales agents or brokers.

A logistic family is a set of products which share a common characteristic: The following metrics may be used by the company to organize its products in different families: Other metrics may present themselves in both physical or monetary form, such as the standard Inventory turnover. Unit loads are combinations of individual items which are moved by handling systems, usually employing a pallet of normed dimensions.

Order processing is a sequential process involving: Picking can be both manual or automated. Manual picking can be both man to goods, i. Automatic picking is done either with dispensers or depalletizing robots.

Sorting can be done manually through carts or conveyor belts, or automatically through sorters. Unit loads are usually assembled into higher standardized units such as: ISO containers , swap bodies or semi-trailers. Especially for very long distances, product transportation will likely benefit from using different transportation means: When moving cargo, typical constraints are maximum weight and volume. Operators involved in transportation include: Merchandise being transported internationally is usually subject to the Incoterms standards issued by the International Chamber of Commerce.

Similarly to production systems, logistic systems need to be properly configured and managed. Actually a number of methodologies have been directly borrowed from operations management such as using Economic Order Quantity models for managing inventory in the nodes of the network. Traditionally in logistics configuration may be at the level of the warehouse node or at level of the distribution system network.

Regarding a single warehouse, besides the issue of designing and building the warehouse, configuration means solving a number of interrelated technical-economic problems: Some important constraints have to be satisfied: Although picking is more of a tactical planning decision than a configuration problem, it is important to take it into account when deciding the racks layout inside the warehouse and buying tools such as handlers and motorized carts since once those decisions are taken they will work as constraints when managing the warehouse, same reasoning for sorting when designing the conveyor system or installing automatic dispensers.

Configuration at the level of the distribution system concerns primarily the problem of location of the nodes in a geographic space and distribution of capacity among the nodes. The first may be referred to as facility location with the special case of site selection while the latter to as capacity allocation. The problem of outsourcing typically arises at this level: Distribution networks can be characterized by numbers of levels, namely the number of intermediary nodes between supplier and consumer:.

This distinction is more useful for modeling purposes, but it relates also to a tactical decision regarding safety stocks: Although configuring a distribution network from zero is possible, logisticians usually have to deal with restructuring existing networks due to presence of an array of factors: Once a logistic system is configured, management , meaning tactical decisions, takes place, once again, at the level of the warehouse and of the distribution network.

Decisions have to be made under a set of constraints: At the warehouse level, the logistician must decide how to distribute merchandise over the racks. Three basic situations are traditionally considered: Picking efficiency varies greatly depending on the situation. A number of tactical decisions regarding picking must be made:. At the level of the distribution network, tactical decisions involve mainly inventory control and delivery path optimization. Note that the logistician may be required to manage the reverse flow along with the forward flow.

Although there is some overlap in functionality, warehouse management systems WMS can differ significantly from warehouse control systems WCS.

The probability density function pdf of the logistic distribution is given by:. Because the pdf can be expressed in terms of the square of the hyperbolic secant function "sech", it is sometimes referred to as the sech-square d distribution. The logistic distribution receives its name from its cumulative distribution function cdf , which is an instance of the family of logistic functions.

The cumulative distribution function of the logistic distribution is also a scaled version of the hyperbolic tangent. The inverse cumulative distribution function quantile function of the logistic distribution is a generalization of the logit function.

Its derivative is called the quantile density function. They are defined as follows:. The alternative forms of the above functions are reasonably straightforward. The logistic distribution—and the S-shaped pattern of its cumulative distribution function the logistic function and quantile function the logit function —have been extensively used in many different areas. One of the most common applications is in logistic regression , which is used for modeling categorical dependent variables e. Specifically, logistic regression models can be phrased as latent variable models with error variables following a logistic distribution.

This phrasing is common in the theory of discrete choice models, where the logistic distribution plays the same role in logistic regression as the normal distribution does in probit regression. Indeed, the logistic and normal distributions have a quite similar shape. However, the logistic distribution has heavier tails , which often increases the robustness of analyses based on it compared with using the normal distribution.

Retailers sometimes have distribution centers where they hold extra inventory purchased from wholesalers prior to store distribution. Neil Kokemuller has been an active business, finance and education writer and content media website developer since He has been a college marketing professor since Kokemuller has additional professional experience in marketing, retail and small business. Skip to main content. Logistics Basics Logistics involves the planning, design, coordination, management and improvement of the processes of moving goods and resources.

Informational Flow Logistics includes a significant flow of information, which contrasts the physical movement of goods pervasive in distribution. Distribution Basics Distribution is one of the four elements of the marketing mix. Transportation Execution One way to distinguish distribution is to say that it is the physical execution of transportation logistics. Nashville State Community College: About the Author Neil Kokemuller has been an active business, finance and education writer and content media website developer since

Distribution logistics includes a wide range of activities. These all focus on achieving efficient distribution and movement of finished products. This takes goods from the . Logistics involves the planning, design, coordination, management and improvement of the processes of moving goods and resources. In some cases, logistics involves more internal systems, while in others it involves collaboration with distribution partners. This is a difference, because distribution inherently includes more than one channel partner. The logistic distribution receives its name from its cumulative distribution function (cdf), which is an instance of the family of logistic functions. The cumulative distribution function of the logistic distribution is also a scaled version of the hyperbolic tangent.