Posted in Marketing and Strategy Terms, Total Reads: 2728
Definition: Distribution Center
A distribution center can be understood as a facility that is usually smaller than a firm's main warehouse and is used for receipt, temporary storage, and redistribution of goods according to the customer orders as they are received. They are also called as ‘branch warehouse’ or ‘distribution warehouse’. It should be duly noted that here the emphasis is on processing and moving goods on to wholesalers, retailers, or consumers rather than on storage.
Also, the key feature of a distribution center is that it is usually ‘demand-driven’. Hence Distribution centers are the foundation of a supply network, as it is the single location to stock a vast number of products.