In a supply chain, a distribution network is an interconnected group of storage facilities and transportation systems that receive stocks of goods and then deliver them to customers.
This is an intermediate point for the delivery of products from the manufacturer to the final consumer, either directly or through a retail network.
A fast and reliable distribution network is essential in today’s society of consumers seeking instant gratification.
Location to the customer and the quality of the infrastructure are the two most important aspects of the distribution network.
There are many types of distribution networks, such as hub or decentralized, which are best suited for different types of products.
Delivery Duty Paid (DDP) is a delivery contract under which the seller assumes full responsibility for transporting the goods until they reach the agreed destination.
Distribution Management manages the supply chain for the firm, from vendors and suppliers to the manufacturer and point of sale, including packaging, inventory, warehousing and logistics.
Free carrier is a trade term that requires the seller of goods to deliver those goods to a specified airport, shipping terminal, warehouse, or other carrier location specified by the buyer.
Supply chain management (SCM) is a centralized management of the flow of goods and services and includes all processes that turn raw materials into final products.