What is a distribution centre/facility?

It is a logistics facility that stores finished products before they are picked and packed to fulfil customer orders. Distribution centres can be viewed as strategic warehouses in a sense. The role of distribution centres in the supply chain is crucial, particularly with respect to fulfilling customer orders more quickly and accurately while keeping costs low.

The way a business operates and manages its distribution center can vary depending on its needs or structure. In retail, for instance, some companies build and manage their own distribution centers, while others partner with third-party logistics (3PL) providers, such as Dress Circle Warehousing that specialises in providing custom made solutions for distribution in Mumbai.

Distribution centers combine traditional warehouse processes with fulfillment center capabilities to create storage solutions that enable companies to quickly ship goods to customers. In particular, distribution centers hold large quantities of inventory and are closer to their intended delivery locations, allowing for faster, more efficient and cost-effective shipping.

Distribution centers are an essential part of today’s supply chain. They’re responsible for receiving products from various locations and vendors, sorting them, and storing them securely before shipping them to where they’re needed, whether that’s a retail outlet or the end consumer. Most distribution centers are located near major metropolitan areas to help speed up delivery times. The right technology, from inventory management to warehouse management and even enterprise resource planning (ERP), can help distribution centers run more efficiently.