Information channels in logistics distribution

The innovation introduced by major retail chains in Poland has many faces, starting from the appearance of the facility and stands, to the huge financial outlays incurred for specialized distribution centers, which, through their operation, advanced IT and hardware technology, show a different face of Polish hypermarket operations than before and completely change the product life cycle and previously accepted principles.

With the great development of retail chains in Poland, one can no longer speak of small-scale logistics for products sold in the aforementioned facilities, which is directly related to the large number of sales outlets of specific chains. In such conditions, one cannot speak of direct distribution on the Manufacturer –

Store line, and it should undoubtedly be replaced by Central Logistics, handled by modern Distribution Centers. This is a system that, by operating efficiently, contributes to meeting needs and increasing customer satisfaction with the choice of a particular product.

Innovative logistics consists of maximizing product availability for customers while simultaneously reducing company costs. This means that large retail chains run their own distribution network, delivering to stores daily only those products that are needed on the shelf that day. The result of such actions is ensuring the availability of goods in sales outlets and minimizing inventory levels, which translates directly into a lack of frozen capital and the simplification of store operations related to storing goods that are unnecessary at a given moment.

Below are several functioning methods of communication between distribution-

logistics companies and their clients. It is impossible for goods sent to an intermediary client, such as a sales unit, not to be based on some method of verification and settlement of the delivered goods. Some of the described methods are old, proven operations, of course, all with a grain of salt, while some of these methods can and should intrigue with their innovative solutions.

The most well-known method of communication between a distribution company and an intermediary client is the very well-known invoice or WZ (goods issue) document, based on which goods reach their destination and are verified. This is a method currently used in most distribution centers in Poland. At the present moment, it is the most expensive form of communication due to the large amounts of paper, toners, etc. used. It should not be forgotten that this is the most proven method, but are we supposed to darn our favorite shirt for our whole lives? That is probably not the point. Undoubtedly, this is the most transparent and “visible” method to the eye, but it is worth noting several negative issues in the form of archiving all documents. How much space will archiving 1,000 invoices in a cabinet take, and how many of the same invoices will fit in electronic form on one CD? For people who have even a minimal understanding of computers, this phenomenon probably does not need to be explained. Without a doubt, it can be stated that the best way of communication and document exchange between two links of the logistics chain is an integrated IT system on the Distributor –

Distribution Center line. Such a solution gives a large field of maneuver for a whole host of IT specialists who can link the exchange of documents between two different companies in many ways. The most one has to pay here is for the implementation of an integrated IT system, which at the moment still costs quite a bit. In the long run, it can be stated that such a solution will bring both companies large financial benefits, which will have a direct impact on the reduction of personnel, material, operating costs, etc., due to the limitation of unnecessary bureaucracy. Such solutions require strict monitoring due to IT dependencies and strict archiving of all documents. In Polish market realities, more and more companies are choosing the method of data flow through integrated IT systems. A similar method, based on electronic data exchange, known and already very often used by some logistics companies, is EDI (Electronic Data Interchange). This method allows for significantly streamlining the circulation of documents, data, and information. International work standards allow for the automatic transmission of various orders, documents, invoices, etc., to intermediary clients. EDI means the transfer of various types of documents processed into electronic form, occurring between different IT systems. In particular, this concerns the transmission of documents between the IT systems of business partners. Such a document can be an invoice, an order, a delivery confirmation, or a price list. EDI technology replaces classic forms of documents with their electronic equivalents.