The warehouse facility which holds inventory from manufacturing pending distribution to the appropriate stores. Distribution Channel: One or more companies or individuals who participate in the flow of goods and services from the manufacturer to the final user or consumer. Distribution Channel Management: The organizational and pipeline strategy for getting products to customers. Direct channels involve company sales forces, facilities, and/or direct shipments to customers; indirect channels involve the use of wholesalers, distributors, and/or other parties to supply the products to customers. Many companies use both strategies, depending on markets and effectiveness.
A facility that stores inventory and ships finished goods orders to customers for a specific geographic area. Its stock is replenished on a periodic basis by manufacturing plants or other distribution centers, and it may process customer returns but does not have production capabilities.