Local Distribution Companies & Material Distribution Centers

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  • 0:04 Local Distribution Companies
  • 1:49 Material Distribution Centers
  • 2:55 Quiz
  • 4:01 Lesson Summary
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Lesson Transcript
Instructor: Jessica Whittemore

Jessica has taught junior high history and college seminar courses. She has a master's degree in education.

This lesson will seek to explain local distribution companies and material distribution centers. In doing this, it will highlight tangible goods and legalized distribution of utilities.

Local Distribution Companies

Within about ten minutes of my home is a large gas company that supplies natural gas to those of us who use it to heat our homes. Adding to this, and rather surprising for our small town, we're also situated only about 20 miles from one of the largest distribution centers for one of the largest box stores in the nation. Both of these facilities work well for today's lesson as one of them is a great example of a local distribution company while the other is an excellent example of a material distribution center. With this in mind, let's get onto explaining the differences between a local distribution company and a material distribution center.

We'll kick things off with local distribution companies. A local distribution company can be generally defined as a legal economic entity involved in the supply of utilities, specifically gas, to the consumers within a specific area. In other words, a local distribution company is a legalized company that supplies much needed utilities for modern day life. It's not a group of people illegally tapping into pipelines in order to heat their homes.

Although most of us don't spend much time thinking about the presence of local distribution companies, we definitely think about them when things go wrong. For instance, last winter, our area was hit with a freakishly cold arctic blast which lasted for what seemed like forever. During this time, the pipelines leading from our local distribution company to many homes froze, creating huge heating issues for many in our area. When speaking of a local distribution company, it helps me to remember that they actually distribute utilities to the consumer.

Material Distribution Centers

Differing in function from a local distribution company is a material distribution center. A material distribution center is a large building or warehouse used to stock and store products to be distributed to businesses or consumers. Often simply referred to as a distribution center, material distribution centers are tasked with storing things from lumber to food. For this reason, material distribution centers can come in the form of a large warehouse full of rugged shelving to a huge building with thousands of square feet of refrigeration. Helping to remember this term, I like to remember that material distribution centers hold tangible, material goods that are sent to businesses and consumers.

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