The Next Generation of Distributed Inventory Management

Transforming regional distributors into a D2C fulfillment advantage

Distributed inventory management isn’t new. But the way it's being done is.

Traditional distributed inventory management – DIM for short – spreads inventory across multiple locations, such as company-owned warehouses, 3PLs, and retail outlets. In a world where ecommerce shoppers expect fast, low-cost, or free delivery, putting inventory close to consumers cuts delivery times and costs. DIM works – if you have the resources to build it.

But what if you didn’t have to build it at all?

That’s the big idea behind The Distribution Network (TDN) – a smarter, faster, and more efficient way to scale distributed inventory management by using inventory that’s already in the field.

A Simple Shift with Big Impact

Traditional distributed inventory management relies on building a physical infrastructure of warehouses or distribution centers or “renting” it in the form of 3PLs, Amazon FBA, Walmart WFS, or other fulfillment partners.

That’s costly, time consuming and risky to set up and manage – especially for brands without a lot of ecommerce experience or expertise.  And once the DIM locations are set up, inventory needs to be stocked at each location – increasing inventory carrying costs and complicating forecasting and replenishment.

The Distribution Network flips the script. Instead of creating new infrastructure, it connects brands with their existing regional distributors to fulfill direct-to-consumer (D2C) ecommerce orders. These are the same partners already stocking their products to serve local retailers. Now, the regional distributors become part of the brand’s nationwide fulfillment network.

The result? Faster delivery, lower shipping costs, and better inventory ROI – working with partners the brand knows and trusts.

From Wholesale to D2C, Without the Friction

Most distributors aren’t set up to handle single-parcel, direct-to-consumer ecommerce shipping. TDN changes that.

With technology from Etail Solutions, the TDN platform connects, coordinates, and controls inventory across all distributor locations. Orders are routed in real time to the best fulfillment node based on location, inventory availability, and shipping cost.

The TDN platform also provides distributors with tools for picking and packing orders, carrier rate shopping including access to Etail’s pre-negotiated low shipping rates, and for printing branded labels and packing slips.

It’s all designed for minimal impact on the distributor’s normal workflows. That means distributors stay focused on what they do best – while brands get the benefits of a national D2C network.

Why This Is the Next Generation

Here’s what makes TDN more than just another fulfillment solution:

  • It’s built on inventory brands already own. No duplication. No overstocking. Just better utilization of what’s already out there.
  • It uses real-time data to drive decisions. Inventory sync, automated order routing, and end-to-end visibility are all built in.
  • It scales fast. Add new regions, products, or distributors without adding complexity.
  • It turns a wholesale network into a D2C advantage. No disruption. No channel conflict. Just more sales.

The Future of Distributed Inventory Is Already Here

The old model of distributed inventory required heavy investment in logistics infrastructure. The new model? Use what you already have.

Multiple studies by FedEx, UPS and other carriers have shown that – depending on the product – three or four distribution locations are enough to provide low-cost, 1-2 day deliveries to most of the country.  So not all of the brand’s distributors need to be on board.

Plus brands can combine their own warehouse or retail locations, 3PLs they already use, FBA/WFS, and regional distributors to create the ideal network using the resources they already have or their unique fulfillment needs. The TDN platform can coordinate them all.

TDN doesn’t just make distributed inventory smarter – it makes it more accessible, more flexible, and more profitable. For brands looking to scale D2C without breaking the bank, that’s not just innovation. That’s a competitive edge.

Ready or not, the next generation of distributed inventory management has arrived – and it’s already in stock.

To learn more about The Distribution Network visit distribution.network.

Additional resources

TDN PLATFORM OVERVIEWS

The Distribution Network for Brands

The Distribution Network for Distributors

Why The Distribution Network Works

BLOG POSTS

Smarter Distribution Inventory Management Drives Ecommerce Growth

Simplify Multi-Location Ecommerce Fulfillment

Distributed Logistics for Digital Commerce: Regional Inventory Visibility

VIDEO

Distributed Logistics for Digital Commerce: Regional Inventory Visibility

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