what is distribution management 
distribution management refers to the process of overseeing the movement of goods from supplier or manufacturer to point of sale it is an overarching term that refers to numerous activities and processes such as packaging inventory warehousing supply chain and logistics distribution management is an important part of the business cycle for distributors and wholesalers the profit margins of businesses depend on how quickly they can turn over their goods the more they sell the more they earn which means a better future for the business having a successful distribution management system is also important for businesses to remain competitive and to keep customers happy understanding distribution managementdistribution management is critical to a company s ability to successfully attract customers and operate profitably executing it successfully requires effective management of the entire distribution process the larger a corporation or the greater the number of supply points a company has the more it will need to rely on automation to effectively manage the distribution process modern distribution management encompasses more than just moving products from point a to point b it also involves gathering and sharing relevant information that can be used to identify key opportunities for growth and competitiveness in the market most progressive companies now use their distribution forces to obtain market intelligence which is vital in assessing their competitive position there are basically two types of distribution commercial distribution commonly known as sales distribution and physical distribution better known as logistics distribution involves diverse functions such as customer service shipping warehousing inventory control private trucking fleet operations packaging receiving materials handling along with plant warehouse store location planning and the integration of information the goal is to achieve ultimate efficiency in delivering raw materials and parts both partially and completely finished products to the right place and time in the proper condition physical distribution planning should align with the overall channel strategy advantages of a distribution management strategyaside from keeping profits up there are many reasons a company may want to use a distribution management strategy first it keeps things organized if there was no proper management system in place retailers would be forced to hold stock in their own locations a bad idea especially if the seller lacks proper storage space a distribution management system also makes things easier for the consumer it allows them to visit one location for a variety of different products if the system didn t exist consumers would have to visit multiple locations just to get what they need putting a proper distribution management system in place also alleviates any potential for errors in delivery as well as the times products need to be delivered businesses can adopt distribution management strategies through electronic platforms which can help simplify the process and boost product sales distribution management as a marketing functionthe fundamental idea of distribution management as a marketing function is that the management of distribution happens in an ecosystem that also involves the consideration of the following effective distribution management involves selling your product while assuring sufficient stocks in channels while managing promotions in those channels and their varying requirements it also involves making sure a supply chain is efficient enough that distribution costs are low enough to allow a product to be sold at the right price thus supporting your marketing strategy and maximizing profit 