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What is a Distribution Center Distribution centers are considered the foundation
of a supply network. A distribution center usually comes in the form of a warehouse.
This warehouse is stocked with specific goods, or all of the goods of a specific brand. All
of the inventory for that region is collected at this warehouse. From there, as orders are
filled, this product is redistributed to stores, wholesalers or directly to consumers.
A distribution provider can lower the cost of communications due to the fact that they
have already established a database of supply and demand conditions. In addition a distribution
provider can take advantage of the economies scope and scale thus lowering the cost of
various market transactions. Lastly they help measures quality control and the conditions
to which your consumers favor.