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Manufacturing vs. Distribution: What’s the Difference?

Manufacturers and distributors are pretty much a match made in heaven. In a nutshell, manufacturers make the goods and distributors get those goods to retailers, who can then put them in the hands of the consumer. Both manufacturing and distribution are an essential part of the supply chain and one really can’t succeed without the other. For manufacturers looking for a strategic, centrally-located distribution center, the Freeport Center in Clearfield, Utah is the ideal solution.

While manufacturers have the option to sell directly to consumers, using a distribution center can be more effective. Under ideal circumstances, a strategic manufacturing/distribution partnership is formed so both sides can leverage their expertise. Shared strategies and trackable processes can be the keys to success, along with implementing tactics to reach manufacturing vs. distribution goals.

What Manufacturers Do
Manufacturers use raw materials to produce finished goods that ultimately end up in the hands of consumers. Manufacturing often takes place on a large scale, resulting in a lot of goods and merchandise that needs to be moved. Manufactured products can be just about anything from appliances and computers to furniture, automobiles, watches and much more. There are three types of manufacturing: Make to Stock (MTS), Make to Order (MTO) and Make to Assemble (MTA). While direct-to-consumer sales are an option, manufacturers often team up with distributors for more efficient processing, inventory, shipping and transportation.

What Distribution Centers Do
Distribution centers are essential to the success of manufacturers who rely on providing and delivering goods to consumers and other businesses. They have the ability to store and distribute large amounts of inventory and typically have an excellent transportation network at their disposal. As wholesale agents, distributors are the link between manufacturers and retailers, and have systems in place to manage, process and ship merchandise in bulk quantities. Using a distribution center like Northern Utah’s Freeport Center can help reduce a manufacturer’s need for additional warehouses, shipping trucks and even employees. Centrally-located distribution centers provide ease of access to both coasts, eliminating the need for many warehouses located across the United States.

The Freeport Center is the premiere distribution center in the Intermountain West. Thanks to our central location, access to a wide transportation network and 78 buildings ranging in size from 4,000 to 400,000 square feet, we provide the most efficient storage and distribution of products and merchandise. Please contact us today to learn more.