Distribution: The Daily Definition

 In Inventory Management, The Daily Definition

What is distribution?

Distribution Definition

Distribution, sometimes called product distribution, is the process of selling and delivering goods to customers. There are varying steps in this process, but it regularly involves purchasing, storing, and shipping products to fulfill the needs of other businesses or individuals. These processes are becoming increasingly important as customers require orders sooner, with fewer errors.

An example:

Because this process is different for every company, there’s no hard and fast rule for what makes a successful strategy. It’s generally done in a business-to-business (B2B) capacity, but companies that sell business-to-consumer (B2C) likely put some of the same steps into practice.

For example, say the company “Termite’s Delight Hardwoods” buys lumber from a supplier in order to resell it to customers. Since their business hinges on getting a product into the hands of the customer, the process they use to fulfill their customer’s needs is called “distribution.” In addition to buying the lumber, Termite’s Delight also has to store it, take orders, and fulfill those orders. All of these steps are part of the distribution process.

Our two cents:

For a company selling goods, this process requires your undivided attention. If your business exists to meet a need, you need to take care of the relationships with your suppliers and customers. Bottlenecks in distribution lead to late deliveries, angry customers, and lost clients. For your operations to be truly successful, it’s good practice to seek regular feedback from your customers. This allows you to analyze how effective your processes are and keeps your customers coming back.

This process can also be applied to dropshipping and ecommerce. In these circumstances, customers can’t try the product before they purchase, so they simply have to trust that the item will arrive just like in the description. This means that the distribution channel has to provide near-constant communication across every stage of the process.

It’s tough to define such a dynamic word in a short post. After all, there’s no one-size-fits-all business template. However, this brief definition paints a broader picture — one that should help you understand the importance of distribution to your business.

And why should you trust us, you ask?

Well, we’d like to think we know a thing or two about distribution.

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