Distribution Center (DC)

A distribution center is the warehouse facility that holds inventory from manufacturing pending distribution to the appropriate stores. It is usually the last stop before merchandise reaches the retail shelves.

The role of a distribution center has evolved over time from simply being a storage space to become an important part of the supply chain. Modern distribution centers are designed to be as efficient as possible, with automated systems that can rapidly process and sort orders. A well-run distribution center can help a retailer keep inventory levels low and avoid stockouts while providing customers with the products they want.

A distribution center typically consists of several key components:

  • Receiving – where inventory is accepted from suppliers.
  • Order picking – where orders are assembled.
  • Shipping – where orders are prepared for shipping to stores or customers.
  • Returns processing – where returns from stores or customers are processed.

In order for a distribution center to run smoothly, it is important to have an experienced and qualified team in place. A good distribution center manager will have a deep understanding of the logistics process and be able to troubleshoot any issues that may arise.

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Distribution center
2018 Warehouse / Distribution Center Survey: Labor crunch driving automation – Logistics Management

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