Spent ten years developing the distribution network for an indie label, grass roots is where it all must start. That is unless you have the BIG $'s behind you, and I do mean big!
I would be happy to discuss how I did things, although a forum such as this would be difficult to go in depth on. Now I am not saying my way is the only way, but it worked very well for us.
Basically you are going to need radio promotions to get airplay for the various artists, which in turn allows you to consign CD's to stores (Mom and Pops) on a per sale basis. Now remeber, with airplay comes the fact that the band is going to have to perform in that city also. Be prepared to issue a SHITLOAD of UPS call tags.
So now we have phone expenses, shipping, touring expenses, (you WILL lose money here), all on top of manufacturing (You need UPC less promos, one-offs- although the label will eat 99% of this cost.
Thats the start to it, if you need more let me know.