Distribution System: Definition & Types

Distribution System: Definition & Types
Coming up next: Exclusive Distribution: Definition, Strategy & Examples

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
 Replay
Your next lesson will play in 10 seconds
  • 0:05 Distribution Systems Defined
  • 1:27 Types
  • 2:43 Lesson Summary
Save Save Save

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up

Timeline
Autoplay
Autoplay
Speed

Recommended Lessons and Courses for You

Lesson Transcript
Instructor: James Carnrite

A marketing, communications, and supply chain professional who has a masters degree in IT Mangement. Has been working with young professionals to develop their leadership styles.

In this lesson about distribution systems we will grasp how the collaboration of various procedures is linked together to aid supply of products and services to meet demand. An ensuing quiz will test your knowledge.

Distribution Systems Defined

Distribution systems can be defined as the sequential flow of procedures, systems, and activities which are designed and linked to facilitate and monitor the movement of goods and services from the source to the consumer. Essentially, distribution is about making products and services available to the end users when and where they need them.

Global Supply Image

Often times, you might hear the term channel of distribution or a marketing channel in reference to the distribution systems. These two terms relate to a group of organizations or individuals who have an impact on the flow of products and services from the source production and the end consumer.

To reiterate, distribution systems refer to making products and services available to the customer base when they are in need and where they can be used. Below are some of the key attributes associated with distribution systems and the benefits they offer:

  • Time: when the consumer wants to obtain the product or service.
  • Place: the place attribute is where the consumer wants to obtain the product or service.
  • Control: consumer ownership of the product or service.
  • Method: the specifics to the distribution channel; ex. a private label grocery product being manufactured by different producers.

Critical to the design of the distribution system, each attribute has a role and responsibility in the end-to-end system and shares common goals, such as profit and growth, which are attained with a unified process.

Types of Distribution Systems

Within a distribution system we can find multiple channels to enable distribution. The following list and examples will provide some insight to some of the common channels we see around us.

To unlock this lesson you must be a Study.com Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back
What teachers are saying about Study.com
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create an account
Support