Distribution chain

Definition

A distribution chain, also known as a supply chain, represents a complex system of activities that includes transportation and logistics methods necessary to ensure the production of goods and their delivery to the end customer. It covers the selection and sourcing of raw materials, their processing and manufacturing, as well as the transportation and delivery of the finished product to the customer.

In other words, the supply chain is a key strategic element that ensures all necessary steps are carried out efficiently so that the product reaches the customer in the right condition, quality, and at the right time.

The main objective of the distribution chain is to ensure that the end customer is satisfied both with the delivered product and with the way it is delivered.

Objectives of the distribution chain

Additional objectives of the distribution chain and the overall distribution process include:

• establishing communication channels to ensure on-time delivery
• optimizing distribution routes to reduce costs
• ensuring efficient warehousing and inventory management to prevent damage to goods

Supply chain activities

The core activities of the supply chain include:

• Procurement – all activities related to sourcing raw materials for product manufacturing
• Manufacturing – the process of transforming raw materials into a finished product
• Distribution – activities responsible for transporting and delivering products to end consumers