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Essential logistical processes for a distributor

The logistics processes of a distributor are essentially the same as for any other business model – they include the phases of receiving, storing and moving cargo, picking, packing and shipping.

However, with the restriction measures adopted to contain the pandemic caused by COVID-19 and the difficulties imposed due to its economic consequences, distributors and companies will have to rethink all these logistical processes.

In this article, we describe in more depth some aspects related to the management of logistics processes in a distributor and what actions must be taken to maintain efficiency and profitability, even with all the security measures implemented to contain the spread of COVID-19. Come on?

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What are the essential logistical processes for a distributor?

Supply Chain Management processes – Supply Chain Management – must aim at minimum requirements of quality, cost and agility, because this way, it is possible to enable efficiency and generate profitability for the distributor.

A functional logistic process flow also depends on the distributor’s geographic location, which must be adequate to favor the movement, storage and distribution of all the organization’s assets.

There are different methods of logistics management. The adoption of the best model must be aligned with the core of the business. For example, an e-commerce that only performs the intermediation between the producer and the final customer, can choose to store it in stock or transfer the product directly – a method called drop-shipping.

Companies that produce and sell their assets, on the other hand, need to consider the factors required for their greater efficiency, characterized by the quality of the results, low cost and, mainly, agility in the dispatch phase, and this can be done through the adoption of a distribution center. .

However, any production method adopted by the company and the logistical process associated with it will determine the number of professionals who must be hired, the acquisition of materials, storage and transportation.

Capacity models for logistical processes can be built to meet specific needs, but should normally take into account:

  • product information (perishability, obsolescence and other specific demands);
  • demand level (by region, by period, etc.);

In addition, it is necessary to evaluate elements that interfere in efficiency, such as receiving capacity, specific storage needs, methods for order separation and organization, dispatch speed, space, adoption of equipment that automates routines, level of qualification of among others.

How has the pandemic changed Supply Chain Management?

The pandemic has created many restrictions on logistical processes. With delays in production and shipping, companies also had to deal with reduced demand, high freight rates and the adoption of security protocols in all of their facilities.

Social distance, including in operational routines, meant the need for more space to work with the same number of employees or the reduction of total capacity, and this also caused delays in deliveries.

The disinfection of work areas and the importance of providing individual and collective protective equipment also impacted the cost of operations. To maintain the effectiveness of logistical processes in this context, many companies have chosen to adopt:

  • implementation of management software, as well as other tools that allow to digitize the processes;
  • adoption of measures to strengthen the relationship between company and client, with full access to process data in real time;
  • use of route management systems for deliveries;
  • continuous training to qualify professionals working in the supply chain.

A company is successful in coordinating its logistical processes when it guarantees traceability in all phases, improves its performance indicators – Time Delivery (OTD), On Time Shipping, OCT (Order Cycle Time), OTIF (On Time in Full) , Average stock, among others -, quickly identifies and corrects any bottlenecks.

To ensure efficiency from the beginning of your supply chain, you need a reliable supplier, such as Matsuda. We care for the best service, with respect, innovation and quality in food deliveries for your PET.

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