Local Distribution Companies & Material Distribution Centers Video

An error occurred trying to load this video.

Try refreshing the page, or contact customer support.

Coming up next: Services in Early and Contemporary Rural Settlements

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

Take Quiz Watch Next Lesson
Your next lesson will play in 10 seconds
  • 0:04 Local Distribution Companies
  • 1:49 Material Distribution Centers
  • 2:55 Quiz
  • 4:01 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

Speed Speed
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.

To unlock this lesson you must be a 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

Become a member and start learning now.
Become a Member  Back
What teachers are saying about
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? 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