![]() ![]() Since a large retailer might sell tens of thousands of products from thousands of vendors, it would be impossibly inefficient to ship each product directly from each vendor to each store. Suppliers ship truckloads of products to the distribution center, which stores the product until needed by the retail location and ships the proper quantity. Large distribution centers for companies such as Walmart serve 50–125 stores. Some organizations operate both retail distribution and direct-to-consumer out of a single facility, sharing space, equipment, labor resources, and inventory as applicable.Ī typical retail distribution network operates with centers set up throughout a commercial market, with each center serving a number of stores. For example, a "retail distribution center" normally distributes goods to retail stores, an "order fulfillment center" commonly distributes goods directly to consumers, and a cross-dock facility stores little or no product but distributes goods to other destinations.ĭistribution centers are the foundation of a supply network, as they allow a single location to stock a vast number of products. The name by which the distribution center is known is commonly based on the purpose of the operation. A distribution center can also be called a warehouse, a DC, a fulfillment center, a cross-dock facility, a bulk break center, and a package handling center. Distribution centers are usually thought of as being demand driven. A distribution center is a principal part, the order processing element, of the entire order fulfillment process. Sainsbury's distribution centre in Waltham Point, Hertfordshire, United Kingdom.Ī distribution center for a set of products is a warehouse or other specialized building, often with refrigeration or air conditioning, which is stocked with products ( goods) to be redistributed to retailers, to wholesalers, or directly to consumers.
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