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=== Nodes of a distribution network === A distribution network would require several intermediaries to bring consumer or industrial goods from manufacturers to a user. Intermediaries would markup the costs of the products during distribution, but benefit users by providing lower transportation costs than the manufacturers. The number of intermediaries required for the distribution network depends upon the types of goods being distributed. For example, consumer goods such as cosmetics and handicrafts may not require any intermediaries as they can be sold door-to-door or can be obtained from local flea markets. For industrial goods such as raw materials and equipment, intermediaries are not needed because manufacturers can sell a large number of goods to a user. Generally, there are three types of intermediaries, namely: agent/broker, wholesaler, and retailer.<ref name="Ghiani 2004"/> The nodes of a distribution network include: * Factories where products are manufactured or assembled * A [[Warehouse|depot]] or deposit, a standard type of warehouse for storing merchandise (high level of inventory) * [[Distribution centers]] for [[order processing]] and [[order fulfillment]] (lower level of inventory) and also for receiving returning items from clients. Typically, distribution centers are way stations for products to be disbursed further down the supply chain. They usually do not ship inventory directly to customers, whereas fulfillment centers do.{{cn|date=September 2020}} * Transit points for [[cross-docking]] activities, which consist of reassembling cargo units based on deliveries scheduled (only moving merchandise) * Traditional "[[mom-and-pop]]" retail stores, modern supermarkets, [[hypermarkets]], [[discount store]]s or also voluntary chains, [[consumers' co-operative]]s, groups of consumers with [[collective buying power]]. Note that [[subsidiaries]] will be mostly owned by another company and [[franchisers]], although using other company brands, actually own the point of sale.
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