It’s one thing to have a high-quality, in-demand product. It’s another to physically get it to the people who want it. This is where a solid distribution service comes into play. 

Whereas warehousing involves the storage of goods in a safe, secure facility to be organized, managed, and retrieved as needed, distribution involves the transportation of goods to-and-from the warehouse – ultimately to the end user.

Distribution service is an often unrecognized and underappreciated element of supply chain optimization – despite being essential to a winning business strategy. It requires complex coordination among broad networks of suppliers, shippers, truck and transportation companies, warehouse and storage facilities and end users. 

As a longtime Cleveland distribution service provider, On Time Delivery & Warehouse has distribution strategy down to a science. We recognize what ample supply chain analysis has established time and again: Efficiency in distribution is one of the most crucial factors for many organizations. 

Why Distribution Matters

A solid distribution strategy will increase efficiency and cost savings, improve customer experience, and open the door to broader market reach and revenue growth. 

Distribution is key to the efficiency and profitability of:

• Manufacturers
• Retailers
• e-commerce companies
• Wholesalers
• food and beverage companies
• construction firms
• medical and pharmaceutical corporations
• automotive industries, government agencies
• import/export operations  

Essentially, any company or operation that requires physical goods to be stored or transported will need to devise a distribution service plan. 

It’s not a “set-it-and-forget-it” type of system. One of the only constants with distribution service is that it’s ever-changing. In recent years, we’ve seen significant shifts in warehouse & distribution strategies with the rise of e-commerce, higher sustainability priorities, advancing supply chain technology innovations and customer expectations of faster fulfillment. 

Distribution networks that are accurate, adequate, and consistent will deliver your business the competitive advantage needed to thrive. Contract with a third-party logistics distribution service provider like On Time Delivery & Warehouse gives for immediate access to all the technology, labor, equipment, communication, skill and experience required for a seamless distribution process without the learning curve. 

Types of Distribution Channels

Distribution channels are the means by which a company manages and plans delivery of products from the supplier/manufacturer to the end customer. 

As noted in research published in the MSA-Management Science Journal, the basic types of distribution channels:

• Direct distribution. This is when companies sell directly to the end consumer, usually through internal e-commerce channels. Example: A customer books a hotel room directly from the hotel, either over the phone or via the hotel website. 
• Indirect distribution. This involves sales through intermediaries such as third-party resellers. Example: You make bracelets that are then sold by a local retail store. Other third-party sellers include wholesalers, online marketplaces (restaurant delivery platforms, Amazon, etc.). Indirect distribution can involve numerous third-party intermediaries between the supplier and end customer.
• Hybrid distribution. This is when the manufacturer/seller uses both direct and indirect distribution. They may sell direct-to-consumer via an e-commerce store, but then also use an intermediary to physically deliver it. Customers maintain direct interaction with the seller, but also have intermediary involvement. 
• Omnichannel distribution. This uses both in-person and online means to provide customers the product when they want, where they want it, and how they want it. Large makeup brands, for instance, will have the exact same products available online via their website, as well as within their brick and mortar stores. This has become an increasingly popular option, particularly with those targeting retail customers. 

Companies of all sizes and industries operate at their highest performance level when their distribution services are carefully crafted and carried out. 

Cleveland Distribution Service Priorities

Increasingly, some of the most effective distribution strategies involve some element of hyperlocal delivery (last mile), sustainable distribution, and distribution that leans into the use of advanced supply chain technology. 

Hyperlocal deliveries are those that may incorporate micro-fulfillment centers and on-demand availability of trucks and vans for quick, last-mile transport. 

Sustainable distribution can drive consumer purchasing by prioritizing efforts to reduce negative environmental impacts throughout the supply chain. Third-party logistics distribution services often have sustainability baked into their core processes. They have optimized modes and routes that trim carbon emissions. Warehouses may implement eco-friendly energy systems and make use of recycled materials for packing. And track and share data that allows for greater transparency can minimize bottlenecks, idling, wait times and delivery errors. 

As for advanced supply chain technology, 3PLs are increasingly leveraging high tech to manage inventory levels, track transport conditions, forecast delivery capacity, pack, pick, and sort packages and more accurately anticipate arrival times. 

By outsourcing all this to a reliable Cleveland distribution service provider with warehousing, trucking, and tracking capabilities, companies can look forward to cost savings, heightened efficiency, improved customer satisfaction and reduced risk. 

Need more information about our Cleveland distribution service options?  Contact us today!