The process between the creation of a product and its arrival at the end customer involves a series of steps, which must be considered in all businesses dedicated to the sale of products (or their delivery).
In this way, logistics and distribution are two fundamental concepts for a company of this type. Mastering these areas allows the brand to be managed strategically and successfully in the market.
At least in Mexico, More than 930 million tons of goods are moved per year, either by land, air or sea. This reflects the constant dynamics inside and outside the country on the marketing and distribution of products (1).
56% of the articles are moved by land, due to the wide availability of roads and highways (1). However, in cities with a lot of traffic or mobility problems, this can be counterproductive in reducing costs and travel times.
More than 900 million tons are mobilized in Mexico
of merchandise by different routes (1).
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In the case of airway, it is used to transport perishable or high-cost products, as well as express courier, luxury goods, medical or pharmaceutical products (1). In this type of transport, the costs are usually higher due to the conditions of the security and logistics service.
In the case of By sea, this is reserved for the transfer of specific merchandise, given its size and volume, However, the transport time must be taken into account, depending on whether it is import or export, since certain controls must pass before reaching the points of distribution, sale or delivery to the final consumer.
To all this, what does logistics and distribution represent for the articles, merchandise and machinery businesses? We will see the concepts, trends, channels and keys that must be taken into account for the success of your company.
If your business is in the industrial sector, we suggest you read our article:
“Industrial sector: economic perspective, keys, projections and trends 2021”.
Vallejo Industrial Zone: reconstruction of the past
It is defined as the set of resources, tools, processes and elements that intervene in the business cycle of a company (2). In this sense, we can consider logistics as a very broad category that affects all areas of your business.
In addition, its link with distribution is very relevant, since the latter depends on logistical arrangements, so distribution efficiency is directly related to the logistics capacity of your company (two).
Specifically, logistics works on the planning, management and control of raw material flows and inventories to meet the demand, in addition to considering the conditions of service, quality and costs involved in receiving, maintaining and distributing the items.
Efficiency in distribution reflects the logistical capacity of your business (2). Both concepts go hand in hand at all times.
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In addition, the logistics organize the necessary means, such as transport and technologies, according to human and financial resources (3). Logistics consider two stages: the provisioning (from the extraction center to the warehouse) and the distribution (from the winery to the point of sale or delivery to the customer) (3).
The Vallejo Industrial Zone is the most important logistics and industrial hub in CDMX. Learn more about her at: “Industrial Vallejo: transformation axes and perspectives of the area”.
Remember that at Vallejo Properties we have warehouses and industrial warehouses in the Vallejo Industrial Zone and the municipality of Tultitlán, with excellent facilities for logistics companies. Schedule a visit to see our facilities.
What is distribution?
It refers to path of goods from when they are manufactured until they leave the warehouse of the company or the Distribution centers to reach the final consumer (4).
This system moves products to the point where the customer can buy or use them , which can be a physical store, an office or, given the current times, a private address (4).
This stage is part of the experience that the customer has with your brand. It is important for him or her to know that, as soon as he or she needs it, the product will be available in a short time.
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In this sense, it is not only relevant to have a good product with a competitive price, but also to have an efficient distribution mechanism that satisfies the consumer (4). In general terms there are three types of distribution (3):
• Direct chain. From the manufacturer’s warehouse to the consumer’s home.
• Short chain. From the factory to the intermediary, to market it. This is common in the retail .
• Long chain. In which a number of wholesalers and distributors participate.
These distribution models can take care of different facets for your business. Remember that at Vallejo Properties we can adapt to your storage and distribution needs to reach your clients and consumers in a timely manner. Contact us for more information.
Knowing the real estate market allows you to explore the options of suitable spaces for your distribution tasks. If you want to know more about this sector, consult “Real estate market: spaces, trends and projections 2020-2021”.
Vallejo Industrial Zone: economic and productive present
Just as the name says, refers to the application of logistics elements in the configuration of the distribution: from when a product is manufactured until it reaches the customer’s hands (5).
This link depends on the objectives set in the production chain. In this sense, the functions of distribution logistics are (two):
• Define the quantity of products sent, with the indication of origin: if they are external or own suppliers.
• Determine the distribution centers that you need as part of the strategic layout of the route to other terminals or direct to the consumer. This part is very important to evaluate the shipping costs that it may represent for your client, as well as the expenses that the transfer of the items implies for your business.
• Anticipate the amount of products that remain and the change in circulation of the merchandise, to update their status and keep a specific record of these movements.
In addition to considering these fundamental tasks for the logistics planning of the distribution, it is necessary to specify the following elements for organization (two):
• Adequate logistical resources , taking into account the model of your business for each phase of the distribution, by optimizing times, equipment and personnel at all times.
• Effective information channels so that the update of the status of the merchandise and the path of these is transparent. We recommend that this route is also open for you to inform the client about the transfer of the requested articles or merchandise.
• Resource availability to adapt infrastructures, solve setbacks and make deliveries more efficient.
The arrangement of all these elements allows you to create a comprehensive strategy with a logistical approach for the distribution of products. Remember that all the processes of your company are fundamental for the customer, so if you are efficient in this regard, the experience will be much better.
If you are looking for a strategic space to optimize the logistics and distribution of your goods, you can count on Vallejo Properties and our property catalog. Contact us for more details.
Warehouses for rent are an ideal modality to carry out your logistics and distribution project. We recommend our article about it: “Warehouses for rent in CDMX: characteristics and recommendations.”
CDIT: work and collaboration
Distribution logistics is preponderant for many sectors, such as industrial, commercial and corporate, so the correct implementation of this strategy allows to control five very important processes within the customer contact path (5):
1. Order processing. At this stage the purchase orders are received and the database is updated to release the products or, in any case, prepare them.
This can be done on different platforms, either on your company’s website or on different marketplaces , What Free market or Amazon , where you can take digital control for your business.
two. Warehouse management. It is very important that inventory entries and exits are recorded on time to streamline processes, anticipate expiration dates and, in general, have a detailed record of merchandise dynamics and their status.
3. Product packaging. This step involves protecting and preparing the products, or where appropriate, checking if it is a fragile item that must be handled with precision or under specific temperature conditions.
Four. Transport of the articles. In this phase prior to delivery, the best routes and means of transport must be considered so that the final section is efficient, correct and fast.
5. Product delivery. Given the current sanitary conditions, the reception modes have been modified, so it will be preponderant that the logistics of the distribution foresee the safest and most functional route of action, without the times being too extended.
As you can see, the logic of distribution demands effectiveness at all times , since causing a bad experience in the final consumer by delivering an incorrect, mistreated, untimely product or, worse still, to the wrong recipient, can impact your business more than necessary.
Thus You must have distribution properties that allow you to cover strategic and central areas for the fast and efficient transfer of articles, either for delivery with suppliers or direct to the customer. Contact us to learn more about this useful service.
Growth figures
The distributors are intermediaries that work for your business and help you to conclude the contact with the client in the most optimal and profitable way. In turn, there are different distribution channels, according to the type of good that you deliver (4):
• Of consumption. It refers to those that make perishable products available, such as food or raw materials, which are a priority in any part of the world. In this sense, a distribution channel, apart from transportation and storage, can be a central market.
• Industrial. It deals with products and supplies, as well as tools and machines that are used to produce or manufacture other items.
• Of finished products. They deal with any other item that is not industrial or perishable, and that is part of the commercial circuits (clothing, toys, electronics, etc.).
On the other hand, the spaces to carry out storage and distribution tasks are a key piece in organizing strategies for your business. Choosing the ideal space is essential to achieve the expected results.
For this type of projects, equipped spaces as warehouses and Distribution centers , specifically wineries , even of industrial type, for some more complex tasks. The main differences between a warehouse and a distribution center are the following (6):
• The store is in charge of handling and safeguarding the inventory, while the center of distribution takes care of managing the inflow and outflow quickly and efficiently.
• The most representative costs of the store are those of space and facilities, while in the center of distribution you should mostly consider investing in trained staff.
• The store has an order cycle of months or weeks, while the center It lasts for days or even hours, as may be the case with perishable products.
Although they are considered different in some respects, the design of both one and the other points to optimizing materials, safeguarding products, guaranteeing safety and making processes more efficient. That is why it is advisable to use warehouses for rent to meet the characteristics of both types of space.
Also, for both cases, the arrangement of the articles must obey the following distribution principles (6):
• The products with more movement must be at the exit to cut processing and transfer times.
• The heavy items should be located in an area where movement is minimized of them, even if it is only to take them from point A to B and you have machinery for it. The ideal is to optimize times.
• In the case of flammable materials or sensitive to water or sun must be in a separate space , as an annex, to avoid accidents and chain reactions.
• All the items that require special treatment must have this , whether it is refrigeration, high temperatures or specific handling for its conservation.
• The tall spaces should be occupied for light items , but also those goods that are considered fragile must be taken care of.
• Of course, security elements must be installed and properly signposted.
It is important to remember that all these measures are taken based on safety, efficiency and costs that loss or damage to personnel, products, equipment or facilities may cause for your company.
It is essential to have optimal spaces to ensure that your business carries out its distribution processes without any inconvenience.
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At Vallejo Properties we are concerned about the safety of your business, so we offer you optimal and equipped spaces to make your logistics and distribution dynamics more efficient at all times. Remember that we are part of the hub most important industrial and logistics company in Mexico City. Contact us to talk about your project.
Vallejo Industrial Zone: future of the region
There are seven key concepts of material flow that should be considered in the design of logistics and distribution plans (6):
1. Maximum unit. It refers to the fact that if the handling unit is larger (a delivery of several packages), it must occupy a smaller number of movements and, therefore, spend less time for it.
two. Minimum travel. It has to do with occupying the least possible time in the movement of the merchandise within the warehouse. If the organization is automated, the processes will be carried out in a better way.
3. Minimal space. This depends on the quantity and size of the products to be placed, but the idea is that there is a safe and manageable space for the transfers inside the warehouses and the warehouses.
Four. Minimum time. This is a key point in the optimization of the process in general, since you must analyze the best movements for the entry and exit of the products, with a clear and defined response capacity.
5. Minimum number of manipulations. These movements should only be considered if they add value to the product or represent a lower cost.
6. Group. Nowadays, it is considered necessary to put together products for the same end consumer, or sets of similar articles, so that the handling unit is larger and the efficiency improves, in order to carry out fewer transfers.
7. Balance of lines. This final analysis determines if the equipment and processes are being adequately occupied for better distribution performance, by also verifying the balance between the cost of inventories and resources.
As you see, all these concepts point to optimization and balance to avoid congestion points, facilitate maintenance and speed up the overall workflow.
You should also consider the distribution of the place, the different areas, pillars, obstacles or factors that help, or hinder, logistics planning.
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In this sense, we recommend that you be very clear about the flow of your processes, prior to thinking about the equipment or place you are going to use, so you can determine what type of space you need based on that, and not the other way around. At Vallejo Properties we are open to your requirements, write to us to offer you our real estate catalog.
Industrial warehouses are the option for your large-scale projects. Learn more at:
“Industrial warehouses: characteristics, areas and recommendations”.
Comprehensive perspective of the area
This area is a key element for many industries because it represents, more than a mode of organization, a fundamental role in the commitment to the circular economy, by implementing effective and sustainable strategies, considering the most convenient distribution and logistics models inside and outside your business (7).
This reduces the costs of your company and the client, through the use of return networks and load and route optimization. The key is to adapt resources and materials to benefit the environment through three basic points: the distribution of goods, the sustainability from logistics centers and reuse of containers and packaging (7).
Undoubtedly, this will be the approach with which the logistics and distribution of products will base its performance in the coming years, taking into account the health and technological context facing the sector.
That is why at Vallejo Properties we offer you properties equipped and located on strategic distribution routes in Mexico City and the Metropolitan Area. Let’s talk about the options we have for you.
Remember that the CEDIS represent a space equipped and optimized for your business. We suggest you read more about it: “Distribution centers (CEDIS): types, characteristics and trends for the strategic management of these spaces”.
References
1. Vise. How are merchandise and products transported through Mexico?. Vise, s / f. Retrieved March 9, 2021.
2. OBS. Logistics and distribution: keys to the success of your product. OBS Business School, s / f. Retrieved March 9, 2021.
3. Logycom. Importance of storage and distribution in logistics. Logycom, s / f. Retrieved March 9, 2021.
4. Patricia Nuño. The distribution of products in the company. Undertake SMEs, 2017. Retrieved March 10, 2021.
5. Patricia Nuño. Distribution logistics. Undertake SMEs, 2018. Retrieved March 10, 2021.
6. Bryan Salazar López. Design and layout of warehouses and distribution centers. Industrial Engineering, 2019. Retrieved March 10, 2021.
7. Company News. Logistics, physical distribution and transportation. Company News, 2016. Retrieved March 10, 2021.
