Histopedia

Here’s an overview of the distribution business:

What is Distribution Business?

Distribution business involves delivering products or goods from manufacturers to end-consumers through various channels.

Types of Distribution Businesses:

1. Wholesale Distribution: Selling products in bulk to retailers or other wholesalers.
2. Retail Distribution: Selling products directly to end-consumers.
3. Logistics and Transportation: Managing transportation, warehousing, and delivery.
4. E-commerce Distribution: Online sales and delivery.

Key Activities:

1. Sourcing products from manufacturers.
2. Warehousing and inventory management.
3. Transportation and logistics.
4. Order processing and fulfillment.
5. Customer service.

Distribution Channels:

1. Direct Sales: Manufacturer to consumer.
2. Indirect Sales: Manufacturer to distributor to retailer to consumer.
3. Multi-Channel Distribution: Combination of direct and indirect sales.

Benefits:

1. Increased market reach.
2. Improved product availability.
3. Enhanced customer satisfaction.
4. Reduced logistics costs.
5. Competitive advantage.

Challenges:

1. Supply chain disruptions.
2. Inventory management.
3. Transportation costs.
4. Changing consumer behavior.
5. Competition.

Key Performance Indicators (KPIs):

1. Inventory turnover.
2. Order fulfillment rate.
3. Shipping accuracy.
4. Customer satisfaction.
5. Return on investment (ROI).

Distribution Business Models:

1. Business-to-Business (B2B).
2. Business-to-Consumer (B2C).
3. Direct-to-Consumer (D2C).
4. Subscription-based.
5. Dropshipping.

Technology in Distribution:

1. Enterprise Resource Planning (ERP).
2. Supply Chain Management (SCM).
3. Transportation Management Systems (TMS).
4. Inventory Management Software.
5. E-commerce platforms.

Notable Distribution Companies:

1. Amazon.
2. Walmart.
3. FedEx.
4. UPS.
5. DHL.