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Understanding Co-Distribution in Logistics

source:ARMADA SOLUTIONS GLOBAL INC.   Update time:2021-10-23

Improving the efficiency of last-mile delivery has been a key focus for logistics companies. Many of them have adopted the concept of co-distribution to enhance their operations. But what exactly is co-distribution? This model involves multiple logistics companies conducting unified sorting and distribution in a shared storage area. By doing so, they significantly improve the efficiency of final delivery stages while effectively reducing operational costs.


1. The Concept of Co-Distribution


The idea behind co-distribution is straightforward. In the past, individual logistics companies would independently handle their own sorting and distribution. For instance, a delivery agent from one company would only handle parcels from that particular company. However, under the co-distribution model, a single delivery agent can handle packages from multiple companies. This enables the sharing of delivery agents, storage spaces, and transport resources—making it an effective method for reducing costs and increasing efficiency within the industry.


2. Application of Co-Distribution in Logistics


Co-distribution is currently widely implemented in areas where logistics resources are limited, such as regions with fewer economic resources. In these areas, manpower and transportation costs can be prohibitively high. By integrating warehousing and human resources, co-distribution offers a solution that not only optimizes current logistics operations but also sets the stage for future upgrades and improvements.