What is Distribution?
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 products being delivered and take proper precautions, when necessary (includes storing goods properly during transportation and auditing packaging procedures). Other common activities typically performed by this group center around maintaining a safe work environment for distribution employees , managing the company's fleet of transportation assets (e.g., cars, trucks, etc.) and overseeing relationships with channel partners and third party logistics (3PL) companies.
Supply Chain Benchmarking ReportBenchmarking Report Bundle
Order Shipment Cycle TimeBenchmarking Report
Distribution KPI EncyclopediaKPI Encyclopedia
Distribution Best Practices GuideBest Practices Guide
Distribution Organization Chart TemplateOrg Chart Template
Distribution Center OperationsWorkflow Template
Order Shipment Cycle Time
The number of hours required to process a customer order, from the time when the order is placed until the time the order is shipped by the supplier.
KPI Type : Service
Formula : Sum of Time to Ship Customer Orders / Total Number of Customer Orders Shipped
KPI Benchmark Range : 3.6-52.1
A typical distribution function is composed of several common sub-functions, or teams, that work together to provide a safe working environment for distribution employees, compiling and packaging customer orders, maintain a properly functioning transportation fleet, and maintain relationships with channel partners and third party logistics (3PL) companies. Browse our Distribution organization chart page to learn about the roles and responsibilities of each major function. Then, download our org chart template (PDF, Visio, PPT) to plan and support distribution operations improvement efforts.
Check out our distribution best practices page to view selected descriptions of work methods that have been proven to produce better results (as compared to other, similar methods). Want more? Download our Distribution best practices guide, which provides a healthy selection of valuable best practices that can be incorporated to improve distribution operations. There might not be only one "best" way to perform every task. However, there is always a "better" way.