Man with laptop computer standing next to big rigs


Man with laptop computer standing next to big rigs

Distribution makes a product or service available to the general public or a business by utilizing an indirect source or channel.

What Is Distribution?

Distribution involves all of the key steps in getting the right amount of product to the desired end location on-time.  It usually uses an indirect source to help the product arrive at the desired location easily and efficiently. The indirect source acts as a channel in order to distribute the source from one to another. They are often referred to as an intermediary. Distribution software can help to organize distribution functions easily and effectively. There may be multiple stages to distribution at more sophisticated levels. These different stages are also known as channels. Distribution can be a costly business function so it is important to utilize all of the right channels to ensure that the proper amount of product arrives. Supply chain management is another important way of helping to keep the roots of distribution moving effectively. Distribution also has to take the market into consideration. This can include ordering a greater amount of seasonal product during the holidays or ordering a greater amount of the best-selling products.

What Industries Use Distribution?

Distribution takes place in many different industries. It is especially common in consumer goods including food, clothing, tools, electronics and more.  When a person goes to the store to purchase these items many different stages of distribution have taken place. This allows for the product ready and available for purchase. There can be multiple areas involved to ensure that the correct inventory and transportation is selected for distribution. This can be especially important for fresh produce and large orders. This is necessary in order to make sure that the goods do not expire and that there is sufficient stock. Inventory management software can help to simplify and streamline the distribution process. It can alert the right channels of low inventory and keep track of sales.


Distribution allows for the product to reach the consumer. Distribution techniques can be aligned with a consumer’s purchasing behavior allowing companies to prepare the right amount of inventory. There are many benefits that come with the right distribution strategy including targeted products and correct inventory. Distribution software allows for the optimal distribution techniques to be used and monitored easily. Distribution allows for consistent and effective strategies to keep product moving throughout the supply chain.