Logistics

6Downstream or Distribution Logistics

6.1. Sheet 33: The Problem of Downstream or Distribution Logistics

Key point

Downstream or distribution logistics is the logistics that manages the relationship with the end consumer. It is the (last) link in the supply chain, which was very early on considered to be crucial. Indeed, it is the one that must deliver the right product to the end customer very quickly. It is therefore directly linked to market constraints and demands. The word “last” is put in parenthesis here, because the evolution of logistics is such that the delivery of a finished product is no longer considered as the “end” of a supply chain. In fact, reverse logistics (see Sheet 35) can give rise to other logistics chains, such as waste reprocessing.

6.1.1. The problem of downstream or distribution logistics

Downstream logistics is the logistics close to the customer. In this respect, it is the first to pass on information in order to specify the type of production process to be implemented. Thus, distribution logistics is directly affected by market constraints and realities. It makes it possible to specify whether the demand (or the sales forecast) is based on logistics in push flow or pull flow. It therefore specifies the life cycle of orders.

Downstream logistics works closely with customers. To respond quickly to their requests, there are several procedures and techniques to manage the flow of information and goods. These approaches and techniques include ...