Distribution Network

AAA

DEFINITION of 'Distribution Network'

An interrelated arrangement of people, storage facilities and transportation systems that moves goods and services from producers to consumers. A distribution network is the system a company uses to get products from the manufacturer to the retailer. A fast and reliable distribution network is essential to a successful business because customers must be able to get products and services when they want them.

INVESTOPEDIA EXPLAINS 'Distribution Network'

Walmart is well-known for the high quality of its distribution network, which helps the company control costs and maintain its competitive advantage. Its distribution network consists of thousands of associates; a private fleet of drivers; and numerous distribution centers and transportation offices. One of the ways its distribution network eliminates costs is my minimizing the number of empty miles its trucks travel.

RELATED TERMS
  1. Reverse Fulfillment

    The portion of the supply chain that moves returned products ...
  2. Disintermediary

    Anything that removes the "middleman" (intermediary) in a supply ...
  3. Organizational Structure

    Explicit and implicit institutional rules and policies designed ...
  4. Value Chain

    A high-level model of how businesses receive raw materials as ...
  5. Lead Time

    The amount of time that elapses between when a process starts ...
  6. Supply Chain Management - SCM

    Supply chain management is the streamlining of a business' supply-side ...
Related Articles
  1. Working Capital Works
    Insurance

    Working Capital Works

  2. Operational Risk: A Must-Know For Investors
    Active Trading Fundamentals

    Operational Risk: A Must-Know For Investors

  3. The Evolution Of Enterprise Risk Management
    Retirement

    The Evolution Of Enterprise Risk Management

  4. Capital Structure
    Investing

    Capital Structure

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center