What is a Distribution Centre?
A Distribution Centre (or DC) is a facility that operates as a connection in the logistics chain for order fulfilment.
A distribution centre can operate as a warehouse, a fulfilment centre, pick and pack station or any number of other operations. Depending on the company (whether it is owned by a brand or works independently) a DC centre can function as a storage location and helps organisation of goods.
Shipment and packaging are often large components of DCs and this aspect can also be outsourced to 3PLs or third party logistics providers.
Another advantage of centralising this process is that allows companies to manage warehousing and distribution using a single team with fixed shipment costs.
Utilising an in-country distribution centre allows brands and distributors an easy way of shipping goods or products from a manufacturer into a country or region.
A secondary advantage of a centralised location for distribution is a reduction in the complexities around tariffs, landing costs and other local taxes.
Streamlining the supply chain helps for faster order fulfilment and a smoother transition from manufacturing to distribution.
