GlossaryEN1 min readUpdated: Jun 22, 2026
Distribution
Distribution is the end-to-end set of processes that moves goods from a manufacturer or central warehouse – through any intermediate handling points – to the final consignee, covering inventory management, order picking, packaging, and transport execution.
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Source: https://en.wikipedia.org/wiki/Distribution_(business)
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Definition & Explanation
Distribution is the end-to-end set of processes that moves goods from a manufacturer or central warehouse – through any intermediate handling points – to the final consignee, covering inventory management, order picking, packaging, and transport execution. It is broader than transport logistics alone: distribution also encompasses order fulfilment and, in many setups, returns handling. The key distinction from procurement logistics lies in direction – procurement manages the inbound flow of materials, while distribution handles the outbound journey to the customer. For freight forwarders and third-party logistics providers (3PLs), distribution operations typically account for the largest share of day-to-day workload.
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