Distribution Chain and its Relevance to the Fulfilment Process

Distribution Chain and its Relevance to the Fulfilment Process

A distribution chain refers to a combination of sales organization and division. Precisely, it entails a series of businesses that participate in transporting, storing and selling goods and services to the customers (Arlbjørn, 2010). For instance, a manufacturer has the responsibility of manufacturing and selling the product to the distributors who will then sell the same products to the retailers or stores. From the retailers, the products are sold to customers. It is understood that companies keep little inventories; therefore, they must perfectly synchronize their supply and distribution chains to fulfill customers’ orders.

The fulfillment process entails activities that occur in the company when it receives an order for the product (Arlbjørn, 2010). Besides, the distribution chain is relevant to the fulfillment process in the following ways. The fulfillment center in a company offers the services of warehousing. They store inventory off-site and allow the customer to monitor them online. Second, the fulfillment centers conduct order processing. The fulfillment center selects items from the customer’s inventory conduct packaging and ships them to the right address. Lastly, activities in the fulfillment process entail taking care of customer’s returns and exchange request. On the same note, in situations when customers return products, the fulfillment center will examine the items to determine the possibility of reselling them.
Reference

Arlbjørn, J. S. (2010). Supply chain management: Sources for competitive advantages. Århus: Academica.