A distribution system consists of a number of procedures and activities with the help of which people monitor and enhance the movement of services and products from different sources to, finally, a customer. In other words, the role of managers in the distribution department is to make the results of the work and goods available to potential users. The performance of an organisation’s distribution system depends on a variety of factors, and I prefer to pay special attention to the list of several measurements, including metrics, standards, goals, and personal opinions.
Firstly, it is necessary to identify logistics metrics that influence the customer’s decisions and quality. In this case, delivery time, the level of service, the condition of products (damage-free delivery), and costs have to be measured and analysed. Secondly, the analysis of the performance should be based on the standards of services. It is expected that a manager or a team of experts investigate the current system of realistic delivery services, set goals, and meet the highest level standards as per the region of work, its cultural preferences and geographical peculiarities. The next step in performance measurement is the identification of financial ratios. Quantitative assessment of budgets and target outcomes will show if the desired success is achieved or not. Qualitative assessment cannot be ignored and has to include the results of communication with customers. The way of how a distribution system works has to be measured by means of the opinions of stakeholders, customers, and employees. Direct communication, face-to-face interviews, or online surveys are preferable tools to gather information. In general, these measurement approaches will promote a high organisational performance at the distribution level.