In any given year, manufacturing makes up more than 10 percent of the total GDP.
Product distribution is a central component of manufacturing. Whether you are a new business or are expanding capacity, understanding the ins and outs of product distribution is vital for success.
Below is a quick look at product distribution basics, including the role of freight transportation. Keep reading to find out how you can improve these complex processes to make your business more efficient and your customers happier.
Defining Terms
First, it is important to be clear about the terminology we are using. “Product distribution” refers to the general process of making goods available to market.
“Freight transportation” is the specific (although no less complex) act of moving the product from a production facility to a retailer or customer.
Developing Logistics
The first step in product distribution is logistics. By this, we mean a strategy and procedures for getting your products where they need to go. This includes planning for all variables, including weather delays and emergencies.
Updating logistics regularly helps with quality control. It allows you to identify inefficiencies or other challenges.
This will be unique to your particular business. Logistics for a company that has expanded distribution to a new region will look different than one that needs temperature controls for food products. But, whatever your business, you must start with a plan.
Transportation and Storage
Getting products where they need to go means making determinations about the size and type of vehicles you need to move products around. It also means having the equipment for loading and unloading your product.
Transportation also involves tracking. Having a system in place to monitor the transfer of products between transportation hubs and delivery to the customer is imperative.
Storage is an important part of product distribution as well and is related to transportation. Unless you are making products on-demand, then storage is important until the distribution of the product.
This is where strategies like cross-docking come in. This is the practice of unloading a truck or railroad car, sorting the products, then directly reloading them onto outbound transports.
One advantage of this is the ability to consolidate shipments going in the same general direction. It also allows you to break down larger shipments into smaller groups for distribution.
These strategies can help improve both transportation and storage efficiency. They can save you money and allow you to ship more goods faster.
Find Product Distribution Services Near You
Now that you understand the basics of product distribution, you can decide which practices best fit your business. Doing the most to make your distribution processes efficient is one of the best things you can do to ensure the success of your business.
At Genex, we offer everything from packaging and trucking services to warehousing and cross-docking services. Our goal is to help you get your product where it needs to go as quickly and as cheaply as possible.
Reach out to us today to learn more about our services and how they might benefit your business.