Making a product is only half the job. Distribution is the set of activities that move goods from the point of production to the locations where customers can obtain them.

It encompasses warehousing, order processing, transportation, and last-mile delivery. Network design decides how many facilities to operate and where to place them relative to demand. Service levels and cost trade off against each other at every decision point.

Retail, wholesale, and direct-to-consumer channels impose different distribution requirements. Visibility systems track goods as they move so that promises to customers remain realistic. Effective distribution turns inventory into available-to-promise stock at the right place and time.

• Movement of goods from production to customers
• Includes warehousing, transport, and delivery
• Shaped by network design and service targets
• Balances cost against customer service levels