Infrastructure & Facilities

In a supply chain, a distribution network is an interconnected group of storage facilities and transportation systems that receive inventories of goods and then deliver them to customers. It is an intermediate point to get products from the manufacturer to the end customer, either directly or through a retail network. A fast and reliable distribution network is essential in today's instant gratification society of consumers.

Location to the customer and infrastructure quality are two of the most important aspects of a distribution network.

There are many types of distribution networks, such as a hub-and-spoke or decentralized, that work best for different types of products.

For the entire distribution network, a company must plan out needs for equipment, workers, information technology systems, and transportation fleets. The company must determine whether a hub-and-spoke distribution network is right for its business or a decentralized network.

Distribution networks come at the post-manufacturing part of a supply chain, the flow of goods and services, and include all stages that deliver final products into the hands of consumers.