What does dispatching mean in logistics? – Definition & explanation
In logistics, dispatching is a field of activity that deals with the allocation and management of business resources to ensure smooth and efficient processes in the warehouse, production logistics, transportation, and the supply chain. (BWL-Lexikon, n.d.)
According to the BWL-Lexikon (n.d.), the following words are synonyms for the term disposition:
- Arrangement
- Regulation
- Decree
- Right of disposal
How does dispatching work?
The most important tasks of dispatching in logistics include:
- Transport planning is a central component and aims to ensure that goods arrive at their destination not only quickly but also cheaply and undamaged. Among other things, the fastest route is determined and suitable means of transport are selected – you will learn more about the means of transport later under the point ‘vehicle disposition.’
- In order management, orders are coordinated from acceptance to delivery.
- Dispatching in the warehouse organizes inventory management, the administration of storage and retrieval, as well as the optimization of the warehouse, ensuring that the available storage space is used as efficiently as possible.
- In the context of personnel planning, not only are duty rosters created for the staff, but seasonal fluctuations (e.g., the Christmas season) must also be taken into account.
- Vehicle dispatching ensures that vehicles are available exactly when they are needed. It deals with the deployment planning of your vehicle fleet and also plans necessary maintenance work.
- Finally, dispatching in the context of logistics also deals with the monitoring and control of logistical processes along the supply chain. If deviations are detected, the dispatcher intervenes at this point and takes immediate corrective action.
Zusammenfassung
In short, dispatching in the logistical context deals with the management of business resources, aiming to make various logistics processes smooth and efficient. (BWL-Lexikon, n.d.) There are several tasks summarized below.
First, transport planning is mentioned – it ensures that goods reach their destination quickly, cheaply, and in perfect condition. The second task area, order management, coordinates orders from acceptance to final delivery. The third area, warehouse management, not only organizes inventory management and optimization of storage space but also the storage and retrieval of products and goods in the warehouse. Through personnel planning, the dispatcher ensures that seasonal fluctuations in orders can always be compensated for and that sufficient personnel resources are always available. The penultimate area, vehicle dispatching, plans the deployment of the vehicle fleet as well as any necessary maintenance work. Monitoring and controlling logistical processes along the supply chain round off the task area of dispatching in logistics.
Source:
Disposition. (n.d.). BWL-Lexikon. https://www.bwl-lexikon.de/wiki/disposition/