A distribution center is a warehouse or specialized location designed to store large amounts of items as part of a supply chain.
Like a warehouse, a distribution center stores and organizes inventory for one or more businesses. As a central part of today's commerce landscape, they do much more than simply house products.
A distribution center also provides the expertise, technology, and organizational systems to streamline supply chains and product movement.
More specifically, a distribution center typically uses third-party logistics to ensure products move swiftly and efficiently through the center and are shipped out to customers in a timely manner.
Some distribution centers utilize inventory management systems to glean insights about stockouts, workflows, and inventory forecasting. With this data, businesses can optimize their supply chain and get products into customers' hands more quickly.
Emphasizing speed, organization, and a customer-centric approach, most distribution centers today take the hassle out of storing products and organizing fulfillment processes, saving the businesses that partner with distribution centers time and money.