Flow-through distribution is a logistics strategy in which products pass through distribution centers (DCs) without being stored, moving rapidly from inbound shipments to outbound delivery. This contrasts with traditional warehousing, where goods are held in inventory until needed. In flow-through systems, inventory visibility, synchronization, and speed are crucial. Retailers often use this model to replenish stores quickly during high-demand seasons or promotions. For example, goods received at the DC in the morning may be shipped out to stores the same day, reducing storage time and inventory carrying costs. This model is also popular in grocery and fashion sectors where shelf life and trend cycles are short. From an inventory optimization standpoint, flow-through distribution minimizes stockholding at the distribution center level, which reduces inventory costs and obsolescence risks. However, it requires accurate demand forecasting, real-time order tracking, and close coordination with upstream suppliers and downstream retail locations. Implementing a successful flow-through model is often a sign of supply chain maturity.
