2.1 Introduction

Figure 2.1

Distribution Chain 

Note. Distribution Chain. From EpicTop10.com, 2021. Flickr. CC BY 2.0. 

Learning Objectives

After reading this chapter, you should be able to understand and answer the following questions:

  1. Analyze the role of distribution logistics in value chain.
  2. Explain the terms Inbound and Outbound Logistics and their components.
  3. Outline the steps in the logistics cycle.
  4. Assess the role of logistics service providers in this cycle.


Managing distribution is one of the integral parts of global value chain. Be it the distribution of raw material or finished goods, organizations try to effectively perform these activities as the former ensures company’s success in the market. Distribution further can be categorized as Inbound Logistics and Outbound Logistics. Inbound Logistics work closely to suppliers whereas Outbound Logistics work close to consumers.  These together form a logistic cycle that connects suppliers to customers. With this in mind, let’s try to look deeper into the concept of distribution logistics and understanding how different components of inbound and outbound logistics work. Also, we will try to build the logistic cycle and analyze the role of logistic service providers in it.

Assessing What You Already Know

As you answer the following questions, reflect upon what you already know about how company’s work.

Text-based alternative.

Overall Activity Feedback

While answering the above questions, you got a chance to analyze what a company receives and sells to their consumers. The products a company receives are a part of ‘Inbound Logistics’ and the goods that a company sells directly to consumers or retail stores is a part of ‘Outbound Logistics’. The process of managing Inbound and Outbound Logistics together is called ‘Distribution Logistics’.

Media Attributions and References

EpicTop10.com. (2021, August 21). Distribution chain [Graphic]. Flickr. https://www.flickr.com/photos/182229932@N07/48592750752. CC BY 2.0.



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Global Value Chain Copyright © 2022 by Dr. Kiranjot Kaur and Iuliia Kau is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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