This paper will describe the role and significance of distribution in the company Pavić d.o.o. Pavić d.o.o. has been operating since 1993 as a company engaged in wholesale and retail trade, catering and production of meat products. The company also participates in distribution as a seller and as a buyer. As a customer, it is important for the company to be supplied with goods so that sales can run smoothly, and the company must take into account the state of stocks and orders of goods, as evidenced by the introduction of HACCP and ISO 9001 certificates. which affects business with customers. The most important activity of the company is the handling of goods and packaging of goods. The company orders goods from producers who are most often from the Republic of Croatia. When the ordered goods arrive from the supplier, they are inspected and, if appropriate, taken over, if not, they are returned to the supplier with a commission record. The goal of physical distribution is to achieve a certain level of service and delivery, so it is necessary to organize the whole distribution process, which is achieved by careful planning of each part of the distribution.