All About Warehouse Distribution

Published: July 8, 2023 | Last Updated: April 14, 2024

Warehouse distribution is a critical component in the supply chain. Here is what it is and why it matters.

What Is Warehouse Distribution?

The term distribution in logistics refers to the entire process of moving finished goods from their supplier to the retailer.

The term warehouse distribution is a special type of distribution that refers specifically to the process of moving freight from a warehouse to the retailer or end user. Thus, warehouse distribution is further down the supply chain than distribution as a whole. It starts at the destination warehouse, rather than at the supplier.

A warehouse that deals with freight distribution management can also be called a distribution warehouse or distribution centre.

What Does Warehouse Distribution Entail?

Warehouse distribution involves all processes relating to getting the finished product from their destination warehouse to the end retailer or consumer. This includes processing orders, retrieving inventory, packing, transporting, and delivery.

1. Order processing: The warehouse receives an order to be fulfilled, which could be from a retail store or an end consumer.
2. Inventory retrieval (order picking): Workers retrieve the products listed on the order from the warehouse’s inventory.
3. Order packing: The selected products are packed for shipping to ensure they are secure during transit.
4. Shipping: The packed orders are prepared for dispatch, loaded onto the appropriate mode of transportation.
5. Transportation management: The routes are planned for efficient delivery, and shipments in transit are tracked.
6. Delivery: The products are delivered to their final destination, whether that’s a retail store or the end consumer.
7. Returns management (if applicable): Any returned products are processed, which could involve refunds or exchanges, damage checks, and restocking or disposal.

Warehouse distribution is a vital cog in the supply chain, taking goods from warehouse to customer.

What is 3PL Distribution?

3PL (3rd party logistics) distribution refers to the outsourcing of distribution needs to a 3rd party. Any time a company hires a 3rd party to handle their distribution needs rather than doing it in-house, it is considered 3PL.

Outsourcing the distribution process to a 3PL provider poses many benefits, including cost savings, scalability, and enhanced efficiencies. That’s because these 3rd parties are highly specialised in logistics, with the right technology, equipment, and experience to get things done right.

Distribution vs. Logistics – What’s the Difference?

Both distribution and logistics deal with the same goal: efficiently getting goods from their origin to their destination.

While they are very similar and often used interchangeably, logistics is a more broad term that encompasses planning, managing, and moving of goods, whereas distribution generally refers only to the physical movement of product from production to consumer.

In other words, distribution is an element of logistics that is concerned specifically with the movement of products to their destination.

Why Is Warehouse Distribution Important?

Warehouse freight distribution is a crucial step in the supply chain process. Without it, the goods would never get to their final destination. Effective warehouse distribution poses many benefits, including the facilitation of:

1. Customer satisfaction: Efficient warehouse distribution ensures customers get their orders in a timely and accurate manner, which enhances customer experience and loyalty.
2. Inventory control: Warehouse distribution aids in maintaining appropriate inventory levels, thus preventing overstocking or understocking situations that can lead to financial losses or missed sales opportunities.
3. Cost management: Well-managed warehouse distribution processes can improve operational efficiency, reducing costs associated with handling, storage, and transportation of goods.
4. Speed and adaptability: Prompt and effective warehouse distribution helps businesses react quickly to changes in customer demand, giving them an edge in today’s competitive business environment.
5. Quality assurance: As part of the distribution process, quality checks are often performed to ensure only goods that meet the specified standards are delivered, thereby preventing returns and preserving brand reputation.
6. Sustainability: Efficient warehouse distribution can contribute to sustainability goals by reducing unnecessary transportation, optimising routes, and thereby minimising environmental impact.

How Do I Optimise My Warehouse Distribution Process?

Efficient warehouse distribution is critical to your supply chain process. How do you ensure that you are maximising your process?

If you are managing it in-house, then it is crucial to place the proper investment in people and processes. You can have the best product in the world, but if it’s not getting to where it needs to go efficiently, then you will have major issues.

Since in-house management requires such a huge investment, 3PL warehousing and distribution solutions are the preferred choice for many businesses. Rather than investing into the development of the people, processes, and equipment required to run a well-oiled warehouse distribution centre, they turn to the experts. Since 3PL distribution providers specialise exclusively in logistics, you can be assured that they are maximising efficiency to positively impact your bottom line.

For these reasons, we highly suggest outsourcing your distribution needs to a 3PL provider. When choosing a provider, there are two key elements to look for – experience, and the level of satisfaction of their clientele.

At Freight Assist, we have been providing Australia with leading 3PL warehousing and distribution services since 2012, with thousands of happy customers. We take our responsibility of distributing your goods seriously, utilising the latest technology, equipment, and investing heavily in our people and processes.

The Bottom Line

Warehouse distribution is a critical step toward the end of the supply chain that entails getting the goods from their warehouse to their final destination. It includes order processing, inventory management, transportation, and delivery.

An effective distribution process means time & money savings, peace of mind, and happy customers. 3PL providers can pose a huge benefit in handling distribution by introducing efficiencies and developing solutions that allow you to scale.

At Freight Assist, we have been providing Australia with leading 3PL warehousing and distribution services for over a decade, and would love to see what we can do for your business.

To learn more about how we can help maximise your ROI with leading distribution services, click here to start the conversation.