Distribution Network

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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.

BREAKING DOWN '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.

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