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. Supply Chain Management - SCM

    Supply chain management is the streamlining of a business' supply-side ...
  5. Supply Chain

    The network created amongst different companies producing, handling ...
  6. Logistics

    The overall management of the way resources are obtained, stored ...
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. Finding Per Diem Rates
    Budgeting

    Finding Per Diem Rates

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center