DISTRIBUTION NETWORK DESIGN

ASSIGNMENT

Submitted to
Ms. Wardha Ghafoor
Submitted by
Group A
Roll no : 9201117, 9201076,
9201078, 9201088
Section : BBA – C
Semester 7th
Session 2020-2024
Department of Management Sciences
NUML, Islamabad
 ASSIGNMENT#01
Write down the details on the importance of logistics
and distribution in economy and industry?
o Definition of Logistics:
Logistics is a part of supply chain management which deals with the planning,
managing and execution of the resources or goods from the point of origin to
the point of consumption according to the needs of the customer. In the world
of digitalization, logistics plays an important role in optimizing the supply
chain processes and increasing the customer experience.
Importance of Logistics in Economy:
Logistics is a cornerstone of any economy, fostering economic efficiency by
enabling cost-effective movement of goods. It drives job creation across
various sectors and contributes to income generation and economic
development. In today's globalized world, logistics facilitates international
trade, supporting nations in attracting foreign investment and enhancing
competitiveness.
Moreover, logistics optimizes cost management within supply chains,
benefiting consumers with lower prices and price stability. It also builds
supply chain resilience, ensuring the availability of crucial goods during
disruptions. Embracing sustainability, logistics reduces environmental impact
through efficient transportation and green practices.
Furthermore, logistics innovation, driven by technology, boosts
productivity, informs data-driven decisions, and enhances supply chain
visibility. This fosters economic growth, ultimately highlighting the
multifaceted importance of logistics in the economy.
Importance of Logistics in Industry:
Logistics is the backbone of industry operations, impacting efficiency, cost,
customer satisfaction, and competitiveness. It plays a pivotal role in ensuring
that products and services reach their intended destinations in a timely and
cost-effective manner. Logistics play a crucial role in today’s economy.
Improved trade logistics infrastructure such as roads & highways, ports,
railways, airports including dry ports, warehousing infrastructure and labs &
testing facilities are necessary for sustainable and balanced economic
development of all parts of the country. Logistics is the management of
transporting goods from the point of origin to the point of consumption in
order to meet customer’s requirements. In short, logistics is all about
transporting the right product, to the right customer, in the right condition &
quantity and at the right place, at the right time and at the right cost. The
success of any business or economy of the country in global markets is also
depending on the importance of trade logistics solutions.
o Definition of Distribution:
Distribution is the part of supply chain process that delivers the goods to the
end-users. Simply we can say that, the steps which are taken to move and
store the product from the supplier stage to the customer stage in supply
chain is distribution.
Importance of Distribution in Economy
The distribution plays a pivotal role in any economy. With the use of effective
distribution network, company can easily expand them into the new market
which potential the sales. When we diversified our business, it helps in
mitigating the supply chain risk because of the multiple suppliers and routes a
company have and in future; if any unforeseen event or downfall caused in the
economy the company can easily manage them. When any company enters
into the new economy or market they must have to face the competitive
advantage; by offering faster delivery, reliability and unique services at lower
cost and have agility then the company can compete in the marketplace.
If we talk about the developing countries their economy are not stable;
so develop an effective distribution network which is more responsive and
flexible for the changing environment and the demands of the customer.
Efficient distribution impacts the overall cost of the supply chain. Whenever
we do, a proper planning and optimization of distribution process it always
leads to cost savings through reduced transportation expense, lower handling
cost and also minimizes facilities expenses. Customer satisfaction is also the
important component in it.
Importance of Distribution in Industry
Distribution is a cornerstone of modern industrial operations. It facilitates the
movement of products from manufacturers to consumers, extends market
reach, reduces costs, and enhances customer satisfaction. A well-structured
distribution strategy can be a key driver of business success and
competitiveness. Distribution plays a crucial role in various industries, and its
importance cannot be overstated. Distribution networks enable businesses to
reach a wider customer base by entering into the new market which helps the
company to maintain product availability in different regions, which can lead
to higher sales and customer loyalty. Different markets have unique needs and
preferences. Distribution allows for customization and adaptation of products
or marketing strategies to better suit local markets.
By utilizing distribution centers strategically, businesses can reduce
transportation costs, as they can store products closer to end customers. This
can also lead to cost savings in terms of warehousing and labor.

THE END