The role of logistics in the distribution channel

With the increase in demand , distributors needed to develop a flawless logistics.

One of the nightmares of a company is to know that the product it manufactures was not obtained due to lack of availability at retail. With the changing buying habits of consumers in recent years , that after the economic stability began to use more small and medium retailers to spot purchases , also increased the concern of industries get the most varied points of sales . Recalling that small retailers grew on average 5 % last year versus 2 % of large networks.

Today , to meet this new consumer, small and medium retailer before accomplished , for example, a weekly application of R$ 500.00 , now weekly, raised the amount to R$ 700.00 , but with two applications of R$ 350.00 . This small change is a huge adjustment for the distribution sector.

Now , instead of a single weekly visit , the seller needs to make two visits and two deliveries in the same week . With lower inventories within the retailer, the delivery became essential that there be no break in the shelves.

Consequently , industries are investing heavily to have the products exhibited in the largest possible number of gondolas . And the distributor has gained greater importance and support the industry in the same measure that became more demanded by better provision of services in defense of the brands.

It is up to the distributor to support the point of sale industry , offering a product mix appropriate for each retailer, at competitive prices , and ensuring the delivery of these products throughout the country , whether in big cities or municipalities where access can only be by boat . The activation of promotional material and partnerships in stock trading have also become an expectation in relation to retail distributors.

With increasing demand , distributors needed to develop a flawless logistics , from capture , business analysis and financial applications , even complex operation to make the products reach the point of sale.

The challenge of delivery with the lowest path in the shortest time , without errors or inversion products without faults and the lowest possible cost , has required efficiency levels ever higher . Thus was born the software tools specialized in this segment , followed by mature processes and best suited to each physical structure and product profile. The cost of logistics , since the proceeds of the industry , representing more than 70 % of the total cost of the distributor . In this installment , are contemplated investments with people , equipment, technology , physical infrastructure, vehicles , fuel, damage , theft etc.

Every investment that brings improvements to this process pays for itself very quickly . Therefore , the large growth in the use of WMS (Warehouse Management System) , data collectors , routing systems , trackers and all kinds of methodology , coupled with these tools , increase the speed and safety of the process.

These and other developments , charged by all other links in the chain , make logistics is increasingly the right arm of the distributor and that it will strengthen further as indispensable agent to run all new and effective machine production, supply and consumption.

Source: http://www.incorporativa.com.br

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