Distribution Center
A Distribution Center can also be called a warehouse with some additional tasks. Warehouse is a place of storing products; it is exclusively for storage only which can be used by business-stakeholders like manufacturers, importers and exporters, wholesalers and transport businesses, so on.
Though to many people the difference between a warehouse and a
distribution center may not be obvious, the logistics industry, however, makes
a valid difference between the two with distinct functions. There are a whole
lot of internal operations for a distribution center with some responsibilities
to fulfill and a warehouse is not expected to carry them out. Even in terms of
structure, there is some difference between the two. A warehouse can be and is designed to receive
goods directly from railways, airports and seaports and it is always equipped
with cranes and forklifts essential for moving and organizing goods. Moreover,
there are different types of warehouse with some special facilities for some
goods like fruits and vegetables; we have already looked into what is called
climate-controlled warehouses. Again,
another important fact about the warehouses is that they are meant for storage
for a long period; with the result, they may not be of much use for small retailers
who do not need store goods for a long period. To achieve a sustainable
business, a retailer must sell more products at a greater frequency; the faster
the goods move the more is the profit and business for a retailer; therefore
for him a warehouse may not be as useful as it is for a wholesaler.
A distribution center is specially designed to store goods for both
the retailers and the wholesalers. Once the goods are received, the
distribution center re-sends them to a different location as required by the
retailers or the whole salers; sometimes, the goods are sent directly to
customers. As a matter of fact, a distribution center is an integral part of
what is called Order Fulfillment Process particularly for online traders and
e-commerce businesses. The general practice is as follows: the retailer, for
example, ships products to the distribution center and from there the product
is sent to the customer. For the sake of convenience, the distribution centers
like warehouses also are often located in easily accessible areas so that the
transport of goods will not be an issue. Main roadways and highways are the
preferred locations for distribution centers.