In the sales channel, distribution typically refers to all processes that occur between producers and traders up to the end customer (or directly between producers and end consumers). How can you reduce time, energy and cost needed to acquire a product?

When and how to apply Distribution:

A distribution business is the portion of the supply chain responsible for moving products and materials from the manufacturer to the retailer. A distribution business, also known as a sales and distribution company, purchases goods from a manufacturer to resell to retailers for a profit. There are two distinct types of distribution companies:

Retail distributors, which are companies that sell directly to consumers, are a type of wholesaler.

Wholesale distributors are businesses that resell the products to final consumers.

Distribution companies can operate independently or under manufacturer contracts.

How to start a distribution business:

1. Choose your product.

2. Identify your niche.

3. Decide how you'll sell products.

4. Select how you'll manage inventory.

5. Determine adequate storage space.

6. Get a business license.

7. Improve your business skills.

8. Find manufacturers.

9. Communicate with retailers.

Well-known companies that use this pattern are Gilette and Android.