It has two important aspects Channels of distribution and Physical distribution. Physical Distribution is concerned with the flow of goods to the ultimate consumers which includes transportation warehousing and inventory management. 10 1 Basics Of Distribution Channels Core Principles Of International Marketing These middlemen constitute the channels of distribution of goods. . For the 7 others they fall into a category called indirect distribution channels. Complex distribution channels offer customers multiple ways of purchasing a product. Channel and physical distribution decisions are interrelated but channel decisions tend to be made earlier. Paths or routes that goods and services take from the producer to the ultimate consumer or industrial user. Distribution actually refer to the businessespeople who perform a variety of functions. The same brand may use different distribution channels based on pricing. ...