Branch
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is branch?
A branch is one of a distributor’s local locations, with a sales counter, a stocked warehouse and delivery trucks, placed close to the customers it serves. Branches handle will-call pickups, local deliveries and walk-in sales, and are restocked from suppliers or from a larger distribution center.
How it works
Stocking more at each branch means faster service but more money tied up in inventory. A common answer is to keep fast-moving items at every branch and slower ones at a central DC that ships to the branches overnight.
Branch example
A plumbing distributor has 12 branches across one metro area. Contractors pick up fittings at the nearest one, while a special-order water heater travels from the DC to that branch overnight.
Related terms
- Distribution center (DC)A distribution center (DC) is a large warehouse where a distributor receives bulk deliveries, stores them and ships orders to customers or its branches.
- Will callWill call is an order the customer picks up in person at a distributor’s branch instead of having it delivered.
- Branch transferA branch transfer is a movement of stock from one of a distributor’s locations to another, recorded in the ERP so that inventory stays accurate at both.
- Inventory turnsInventory turns is the number of times a distributor sells through its average inventory in a year: annual COGS ÷ average inventory at cost.
