Distribution logistics subsystem in an enterprise

The distribution logistics subsystem is responsible for coordinating all flows and activities aimed at the physical delivery of products to the customer. The tasks and functions of the distribution logistics subsystem focus mainly on warehouse operations and handling, packaging, and delivering physical goods to final buyers using own transport or through an external logistics service provider.

The activity of the studied enterprise consists of distributing products obtained directly from manufacturers to a network of partner stores. The enterprise has been operating in the bicycle industry for nearly 20 years, which is characterized by high competition and relatively low saturation in relation to the brands sold by the enterprise.

Enterprise business profile
The enterprise has its headquarters and warehouse space located in Częstochowa, from where it distributes bicycle industry articles through a network of partner stores. Currently, the enterprise cooperates with almost 200 stores throughout Poland. Most of the partner stores are located in the Masovian Voivodeship (44 partner stores), with the Silesian Voivodeship being the second largest (42 partner stores). The enterprise has a full range of bicycles, both mid-range and top-class. The enterprise cooperates with the largest companies in the bicycle industry in Poland and systematically increases its market share of direct representations of industry manufacturers. The enterprise’s sales offer includes ready-made bicycles and a wide range of accessories, including helmets, tires, pumps, backpacks, lights, or water bottles. The products sold are presented in seasonal catalogs, which serve a marketing function and at the same time significantly simplify product selection for customers.

The enterprise monitors the changing market and adjusts its annual offer to new trends, and establishes cooperation with an increasing number of bicycle equipment manufacturers on the basis of direct representation. The enterprise’s business model is based on commercial cooperation with only one manufacturer in a given product category through an existing exclusive sales agreement.
The distribution of goods obtained from manufacturers is the main subject of the enterprise’s activity; therefore, it is important to properly plan all processes and coordinate the flows of physical goods and information in the chain of distribution processes. Lack of optimization or irregularities in the functioning of the distribution logistics subsystem would expose the enterprise to the loss of customers. (…)

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