Distribution Organization Structure

The Organizational Design of a Distribution Function: Definitions, Roles & Responsibilities

Distribution Organization Chart

Distribution Organizational Structure Outline

Supply Chain Management Organization Chart Template

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Distribution Organization Chart Template

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The Distribution Group handles all aspects of the flow of outgoing products to customers. The primary purpose of the group is to arrange and compile necessary goods and/or materials before dispatching them to customer(s) on a timely basis. With a large consideration to transportation costs and timely shipments, the Distribution Group must also monitor the safety of the delivery and take proper precautions, if necessary (including storing goods properly during transportation and auditing packaging procedures).

Common Distribution job titles: EVP/SVP of Distribution Operations, Chief Operating Officer (COO)

Channel Design & Management

The Channel Management function is responsible for the design and development of marketing and distribution channels and manages relationships with intermediaries (also known as channel partners). Intermediaries are third parties who bridge the gap between producer and consumer. They play a vital role in delivering the product to the consumer in an efficient and effective manner. Intermediaries can include service providers, retailers, systems integrators, wholesalers or original equipment manufacturers (OEMs).

Common Channel Design & Management job titles: Distribution Analyst, Channel Distribution Account Manager, Channel Manager, Manager of Channel Sales, Channel Marketing Manager, Channel Program Manager

Fleet Management

The Fleet Management function is responsible for maintaining the assets that physically move goods from producer to consumer, or to an intermediary (a third party who acts as a conduit for goods or services offered by the producer, such as a retail store, market or similar). They analyze distribution costs to determine when vehicles (trucks, vans, airplanes, etc.) should be replaced or phased out and perform ongoing preventative maintenance for the company's fleet of transportation assets. The Fleet Management function is also responsible for ensuring that transportation assets are used efficiently (e.g., gas use, driver habits, route monitoring, etc.) and safely.

Common Fleet Management job titles: Fleet Maintenance Mechanic, Delivery Driver, Fleet Coordinator

Logistics Health & Safety

The Logistics Health and Safety function is responsible for maintaining a safe work environment for distribution employees and developing standards related to the distribution of goods (especially goods that require careful handling during shipment, such as foods or chemicals). They guarantee that environmental, health, safety and security requirements are incorporated in all of the company's procedures and operating habits. The Logistics Healthy and Safety function also works to make sure that company transportation practices are compliant with the Department of Transportation (DOT), which sets safety regulations for all major means of transportation.

Common Logistics Health & Safety job titles: Compliance Planner, Transportation Safety Coordinator, Distribution Quality Analyst

Order Picking & Shipment

The Order Picking and Shipment function is responsible for compiling and packaging customer orders and ensuring that products/goods are adequately stored and protected during distribution, or shipment. They fulfill orders as requested by the Order Managment group and prepare them to be distributed to the appropriate location at the right time.

Common Order Picking & Shipment job titles: Order Fulfillment Associate, Shipping Coordinator, Merchandise Processor, Warehouse Associate

Third Party Logistics Management

Companies often outsource warehousing and shipping tasks to third party logistics (3PL) companies that provide supply chain services based on market conditions and client needs. The Third Party Logistics Management function is tasked with identifying and managing relationships with 3PL providers. They work with logistics providers to determine facility requirements, customer needs/expectations and overall logistics strategy.

Common Third Party Logistics Management job titles: Logistics Data & Business Analyst, Logistics Sales Specialist, Logistics Coordinator