Distribution 

 

Distribution is the downstream leg of the supply chain that moves finished goods from factories or warehouses to wholesalers, retailers, or end-customers, using a blend of line-haul, cross-dock and last-mile networks.  
  

A distribution network links manufacturing plants, regional distribution centers (DCs) and urban depots in a multi-echelon architecture. Core activities include inventory allocation, picking & packing, route planning, line-haul transportation (FTL, LTL, parcel), cross-docking, consolidation, and final-mile delivery. Key cost and service levers are drop density, vehicle fill-rate, delivery window compliance, and dwell time at docks. Modern distribution relies on Transportation Management Systems (TMS) and real-time visibility platforms that predict ETAs, trigger exception alerts, and calculate grams-CO₂ per delivery, capabilities now demanded by shippers pursuing Scope 3 reductions.  

What is the difference between distribution and fulfillment? 

 

 Fulfillment focuses on e-commerce order processing (pick-pack-ship, returns), whereas distribution covers broader B2B and B2C flows, line-haul, cross-dock and last-mile, from DCs to multiple customer types.

How is a distribution center (DC) different from a warehouse?  

 

A warehouse may simply store goods, but a DC is engineered for high-velocity throughput, with cross-docks, pick modules, value-added zones and transportation docks to ship orders within tight windows.

What KPIs matter most in distribution?  

 

On-time, in-full (OTIF), cost-per-stop, vehicle fill-rate, delivery productivity (stops per hour) and CO₂ per shipment are typical scorecard metrics.

How can companies cut the carbon footprint of distribution?

 

Tactics include switching to alternative-fuel fleets, increasing drop density through dynamic route optimization, relocating urban hubs closer to consumers (as GEODIS did in Paris), and using rail or river legs for line-haul where feasible.

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