LOGISTICS FAILURES IN DISTRIBUTION PROCESS

The importance of failures identification, monitoring and elimination in logistics is recognized in literature and practice. Failures elimination directly affects the increase of logistics services quality. This further has impact on costs reduction, increasing customer satisfaction, loyalty and finally revenue increasing. In this paper logistics failures in product distribution are identified. Methodological approach for identification and correction of failures in distribution process is proposed in this paper. Failures in warehouse, transport, inventory and other processes are described in more details. Also the main causes are identified. In this paper the failures are analyzed in 13 distribution centers of one trading company that operates in Serbia. The model for distribution centers ranking based on Principal Component Analysis (PCA) is tested. The results show great applicability of the proposed approach.