Product distribution is the planning and control over the movement of goods from production to the place of their use. The main goal of product distribution is to make a profit and satisfy the needs of consumers. Product distribution in marketing helps to control prices, improve the quality of service and attract additional customers. The purpose of goods distribution is the timely delivery of goods to their destination with the least cost.
Product movement begins from the moment the order is received from the client. The supplier company very quickly draws up invoices, draws up a set of available products and sends the order to the client, all actions are accompanied by payment and shipping documents. Everything is done very quickly: the order department processes the applications, and the warehouse ships the necessary products. In the modern world, goods distribution is not complete without computer processing, this allows you to organize work at the company without delays and downtime.
Until the moment the goods are requested by customers, they must be stored in a warehouse. The organization of storage of goods in a warehouse is a completely normal phenomenon, since the cycles of production and consumption of goods may not coincide with each other. For example, some agricultural products are produced seasonally, although demand is constant. These contradictions are easily compensated by the organization of warehouse storage. Some enterprises store a small part of the goods of their production at the enterprise itself, and most of the manufactured products are usually stored in the company's own warehouses in different parts of the country.
Often, firms for their purposes use long-term storage warehouses and transit warehouses, which are an intermediate point between suppliers and consumers. Correct turnover can be ensured if the company is equipped with new warehouses that are equipped with modern automated cargo handling systems. All actions of loaders and automatic machines are controlled by a central computer, so there are no delays or downtime in the system. As a rule, to service such warehouses, whose products often amount to 100-200 million rubles, only a few workers are needed.
The decision to maintain certain stocks, warehousing and transportation of goods requires more careful consideration by the management of the company, only then the movement of goods will be efficient and coordinated. It is far from a secret that commodity circulation is revenue plus cost of goods and minus VAT, this number can only be obtained by calculation. Revenue is one of the most important indicators of social and economic development for any enterprise. The most important factor in generating revenue is the demand for goods, which in turn depends on the prices of other goods and services, household incomes, and other factors.
To create effective distribution of goods, high-quality and timely turnover of goods is required; it can be of two types: wholesale and retail. In this case, goods sold to ensure commercial activities to legal entities or individual entrepreneurs are considered wholesale trade. This does not exclude the release of goods at retail to consumers, and therefore wholesale and retail trade have a fairly strong relationship and equally effectively affect product distribution and turnover. Nevertheless, in the accounting documents, each company must determine for itself which type of trading activity is most acceptable to it.