NewStream Blog

Once a business has outgrown its storage space or lacks the time necessary to oversee important processes involved in distributing products, it’s time to take the next step. In order to grow and expand, there are many logistics and warehouse operations to consider when distributing physical inventory including inventory management, pick and packaging, trucks and transportation, boxes, labels, supply chain management, fulfillment, order processing, quality control, material handling, increasing productivity and warehouse management. 

Given all the details that a company has to attend to in order to design, develop, test, brand and market a product, it’s not surprising that many businesses don’t put a lot of thought into their product distribution network. That is, until they’re actually ready to start selling units.

Is your business making strides but now you’re starting to see bottlenecks and need to quickly scale your shipping and fulfillment processes to keep up with demand? In the United States, distribution is a design driver because of the increasingly wide range of products offered by companies and due to changes in the efficiency of retail logistics. Utilizing distribution centers not only helps ensure  product availability with minimal back orders, distribution centers also help keep product costs down.

In product distribution and order fulfillment, keeping internal costs down and product prices reasonable leads to higher profits and customer satisfaction. Utilizing distribution centers not only ensures a fluid availability of products with minimal back orders, but also establishes a pricing strategy for the different distribution channels. In terms of distribution, the greatest impact of production price comes from the distribution channel.