How Does Logistics Differ From Distribution

How Does Logistics Differ From Distribution? Logistics is a planning function within supply chain management. Ryan McVay/Photodisc/Getty Images. Related Articles. 1 Outbound Vs. Inbound Logistics 2 Four Functions of Marketing Logistics 3 Goals and Objectives of a Logistics Company 4 The Importance of Warehousing in a Logistics System. Supply chain management, logistics and distribution all overlap in some ways. In general, they all affect the methods used by a business to acquire, transport and resell goods within an industry. A central difference is that logistics encompasses more elements of planning and information flow, whereas distribution more often describes the physical movement of goods. Logistics Basics. 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 primary goal of logistics is to improve the efficiency of internal warehousing and transportation functions and to collaborate with distribution partners to maximize efficiency in the movement of information and goods. Informational Flow. Logistics includes a significant flow of information, which contrasts the physical movement of goods pervasive in distribution. Developing automated inventory systems is a key element of logistics. Many retailers, for instance, sync store computer systems with their own distribution centers or those of suppliers. This electronic integration allows for automated processes for merchandise ordering, distribution center order fulfillment and transport of goods to the stores. Distribution Basics. Distribution is one of the four elements of the marketing mix. From a big picture perspective, it encompasses the ways in which a business makes goods available to its customers. It also involves the actual physical movement of goods through a distribution channel. A distribution channel is the process a product goes through from manufacturer to wholesaler to retailer and finally, to the end consumer. In managing distribution, each company has to contemplate the most affordable ways to move goods to its customers. Transportation Execution. One way to distinguish distribution is to say that it is the physical execution of transportation logistics. One element of distribution is selecting the best transportation methods. Air, ground and ship methods are all common. Many wholesalers operate distribution centers where they hold goods acquire from manufacturers prior to resale. Retailers sometimes have distribution centers where they hold extra inventory purchased from wholesalers prior to store distribution. References (3) About the Author. Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.