ABSTRACT
The main aim of this paper is to identify and describe the operational models that are currently being used in Spain for
physical distribution for the HORECA channel and to propose a selection guide that will allow the manufacturer to
select the distribution model that best fits their system according to a set of operational variables. Firstly, a description
of the present situation of the HORECA channel in Spain will be given. Secondly, we will outline the complete cycle
order-delivery-payment in each one of the distribution models identified for this channel: auto-sales, pre-sales, direct
delivery, distributor (manufacturer sales), and distributor (distributor sales). Thirdly, operational variables are defined
that help the manufacturer identify which distribution model is more appropriate according to their needs and a
selection guide is proposed (main contribution of this study). Finally, the conclusions of the study are presented and
future developments in this area are outlined.
Keywords: logistics systems, distribution, HORECA channel.
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1
2009-CIE39-FR.
establish agreements with different subcontractors In the following paragraphs the results stemming from
(3PLs, distributors) to guarantee the homogeneous level the study will be presented and a selection guide
of services in the entire country required by their proposed that will allow manufacturers to choose the
customers. distribution model most adequate for their system.
On the other hand, the other structural problem
identified in this type of distribution is the elevated 3. DISTRIBUTION MODELS FOR HORECA
costs associated with the order-delivery-payment cycle. CHANNEL
It is estimated that these costs in the HORECA channel
are four times greater than in large-scale retail In this section, the five distribution models for the
(Accenture- AECOC, 2004). These high costs in HORECA channel identified in this study will be briefly
comparison with other logistics systems are due to described. Both the information flow (continuous black
multiple factors (very small orders, very frequent line) as well as the financial flow (dotted green line) and
deliveries…). physical flow of goods (dotted blue line) associated with
Finally, we should point out that researching this topic is the order-delivery-payment cycle have been represented
of interest. A review of the existing literature has made for each of them.
it evident that there is scarcely any scientific literature
written specifically on logistics processes in the 3.1 Pre-Sales Model
HORECA channel.
The main characteristic of the pre-sales model (Figure 1)
2.1 Objectives is that orders are placed before delivery, usually the day
before (J-1). The order is placed either by a sales agent
The main aim of this paper is to identify and describe who carries out a predefined sequence of visits to
the operational models that are currently being used in customers (this sequence will become the distribution
Spain for physical distribution for the HORECA route the following day), or by the delivery truck driver,
channel and to propose a selection guide that will allow whose job is two-fold, both sales and logistics,
the manufacturer to select the distribution model that providing service to the set of customers that are
best fits their system according to a set of operational assigned to him and that are usually located in the same
variables, which will also be defined in this study. geographical zone constituting a delivery route. In any
case, with the orders received in J-1, the manufacturer
2.2 Methodology puts sufficient inventory to supply day J orders at the
disposal of the delivery routes. Delivery may be done by
The methodology followed to reach these objectives the manufacturers themselves through their own means,
consisted of two main stages: available at different national offices, or outsourced to a
• Literature review. Scientific journals, logistics operator.
magazines, company studies, etc. were
TRUCK LOADING
reviewed. As a result of this stage, it became
clear that there are very few studies centered ROUTE LIQUIDATION
DELIVERIES MANUFACTURER
CHECK/ TRANSF. IF CREDIT
Economic Flow
complete view of the problems related with
Materials Flow
this distribution channel. The meetings took
place each six weeks. A project plan was sent Figure 1. Pre-Sales Model. Sources: IBM Global
to each group member before each meeting. Business Services (2006).
Group members carried out their tasks and
presented the results of these at the meeting, Another important characteristic in both the pre-sales
discussing them jointly with the other members. and auto-sales (model 3.2.) models is the possibility of
Minutes were taken at each meeting and sent to the customer paying in cash at the time of delivery.
all the participants along with the other This is one of the historical peculiarities of the
documentation seen during the meeting. HORECA channel that continues to exist in this sector,
not very accustomed to billing later, which means
giving customers a certain credit limit.
with many orders pending for the following day in the
3.2 Auto-Sales Model case of auto-sales.
The principal advantages of the pre-sales model over the
TRUCK LOADING auto-sales model are the following: better route
ROUTE LIQUIDATION MANUFACTURER CUSTOMER planning, promoting sales and reducing stockouts.
CH
EC
DELIVERIES INVOICE 6
K/
RETURNS (IF CREDIT)
T
3.3 Direct Delivery Model
RA
CASH 5
NS
DAY AFTER ORDERS CREDIT NOTE
Economic Flow
F.
IF PRODUCT
FI
RETURNS
7
CR
Materials Flow
OPERATOR
ED
CHECK/ TRANSF.
IT
MANUFACTURER
CUSTOMER
AUTO-SALE ORDER TO TRUCK STOCK 1 4
CUSTOMER CUSTOMER
4 INVOICE IF CASH 2 DELIVERY NOTE POD INVOICE
POD 3
3
CASH
PRODUCTS RETURN
Economic Flow OPERATOR 2 B
CROSS DOCKING DELIVERY
PRODUCTS DELIVERY Materials Flow ORDER NOTE
FAX, EDI, PHONE
1 CUSTOMER
Figure 2. Auto-Sales Model. Sources: IBM Global
Business Services (2006).
important to remember that the study was carried out Order size (% pallet) < 10% 10-25% 2-10 pallet 5-33 pallet 5-20 pallet
Deadline for deliveries
from the point of view of the manufacturer. (% product shelf life)
85% 85% 100%
Service Quality Yes No Yes No No
Delivery Requirements Yes No Yes No No
4.4 Service Quality
Table 1. Decision Matrix. A Selection Guide for
Within the working group, the service quality variable choosing the appropriate distribution model.
was defined from a dual point of view. On the one hand,
5. CONCLUSIONS AND FURTHER payment) and proposing solutions that would better the
DEVELOPMENTS efficiency of these processes.