What is the distribution industry?
The distribution industry is an essential link in the supply chain, connecting manufacturing companies and suppliers with various businesses, contractors, institutions, retailers, and now, increasingly consumers. Distribution industries focus on delivering a wide range of products through a variety of channels and methods. Many also offer value-add services to differentiate themselves and provide more value to their customers.
What do distribution companies do?
Distribution companies serve as the vital bridge between producers and end users. They purchase, warehouse, and move goods – often in massive quantities – so that products are available where and when they’re needed. Many also offer services such as assembly, customisation, technical support, and even inventory planning to optimise their own operations and create even better value for their customers.
What are distribution channels?
Direct distribution channel
Indirect distribution channel
Hybrid distribution channel
Distribution industry vs. industrial distribution: What’s the difference?
3 strategies for distribution channels
What is reverse distribution or reverse logistics?
Reverse distribution – or reverse logistics – refers to the flow of goods in the opposite direction of typical fulfilment: from end users or sales channels back through the supply chain. It covers product returns, recalls, repairs, refurbishment, recycling, and other scenarios where items re-enter the system for processing.
Today’s distributors are increasingly expected to handle reverse flows efficiently and sustainably. From electronics to perishables, goods must be inspected, sorted, and routed based on condition, value, and regulatory requirements. But the good news is that reverse logistics can be a source of cost recovery, customer satisfaction, and, of course, environmental accountability. But only when supported by clear tracking, smart routing, and systems that manage inventory and compliance at every step.
Key intermediaries in distribution
Retailers
Wholesalers
Agents
Brokers
The internet
Distribution industry examples
Industry-specific tools to help distributors thrive in a fast-paced world
Distribution software suite
Distribution ERP
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