Distribution Operations

A distribution business buys or receives products, stores them, and delivers them to retailers, businesses, or other customers. Its main operations are:

• Purchasing: Select suppliers, negotiate terms, and order products.
• Receiving: Check incoming shipments for correct quantities and condition.
• Warehousing: Store products safely in organized locations.
• Inventory management: Track stock levels, replenish products, and investigate discrepancies.
• Sales and customer service: Find customers, provide quotes, answer questions, and manage accounts.
• Order entry: Record customer orders and confirm prices, availability, and delivery details.
• Order fulfillment: Pick, pack, and prepare the correct products for shipment.
• Transportation and delivery: Arrange carriers, routes, tracking, and delivery.
• Returns: Process damaged, incorrect, or unwanted goods.
• Billing and financial management: Invoice customers, collect payments, pay suppliers, and monitor costs and profit.

The overall goal is to get the right products to the right customers, in the right quantities, on time and at a workable cost.