Distribution Warehouse

A distribution warehouse, also known as a DC, is a facility in which a company assembles customer orders for shipment. Distribution warehouses are used to manage the flow of goods to and from production facilities, retail stores, and other customers. They typically have a large storage area and often use conveyor belts and forklifts to move products around.

Distribution warehouses can be either public or private facilities. Public facilities are open to all customers, while private facilities are only open to approved customers.

There are several types of distribution warehouses:

  1. The most common type is the cross-dock warehouse, which is used to assemble orders for shipment to retailers and other customers. In a cross-dock warehouse, products are received from suppliers and immediately sorted into shipping lanes. Orders are then assembled and shipped out the same day.
  2. Other types of distribution warehouses include the following:
  • Bulk storage warehouse: A warehouse that stores large quantities of a product in order to meet the demand of a specific customer or market segment.
  • Final assembly warehouse: A warehouse where products are put together from individual components for shipment to customers.
  • Forwarding and consolidation warehouse: A warehouse that consolidates shipments from multiple suppliers for delivery to a single customer.
  • Order processing warehouse: A warehouse that processes customer orders and ships them to the appropriate destination.

The role of the distribution warehouse is to manage the flow of goods to and from production facilities, retail stores, and other customers.

Related Links

Warehouse vs Distribution Center – What’s the Difference? – SUPPLY CHAIN MINDED
Difference Between Warehouses & Distribution Centers- Maryland
Warehouse & distribution center site selection: Seeking a skilled workforce – Logistics Management

Related Videos