"Distributing" vs. "Distribution."

Is there a rule when to use “distributing” instead of “distribution” or is it just a preference on which word sounds better?

Example Sentence:
“XYZ Corp. will begin with the manufacturing and distributing of a limited number of products with expectations to expand shortly thereafter.”

I think the sentence should read “distribution of” – does the word in use depend on the preposition that follows?

If I wanted to keep the word “distributing” in this sentence could I change the sentence to read: “….will begin by manufacturing and distributing a limited number of products…?”

Is the initial sentence incorrect as is or is it simply a matter of preference?