These inbound goods will typically come from manufacturers and wholesalers in LTL and FTL loads that need to be verified and stored. Inbound freightĪ feature central to how distribution centers work is managing inbound goods, often in the form of large freight shipments. To get a handle on that, let’s consider the order fulfillment, logistics, and management processes common to many distribution centers. So, this inventory management will look a little different. They’re about moving goods in larger quantities than individual end-consumers need. However, the core difference here is that third-party distribution centers primarily focus on using warehouse storage support to retailers or fulfillment centers. How distribution centers workĭistribution centers can have a broad range of services and departments that you may see in a standard fulfillment center. The distribution center may ship everything from jeans and jewelry to dining room sets and TVs to a local retail location in a single order. From there, the company uses technology and centers to track store inventory levels and replenish stock on a set schedule. This company could be a department store chain where goods from many manufacturers are sent to a distribution center. Many companies that manage an extensive supply chain will have their own distribution center to manage a region. Their fulfillment targets are often fulfillment centers or large retailers. These centers move large volumes of products. Defining a distribution centerĪ distribution center is part of a supply chain network where goods are stored and later sent out to customers or a company’s own locations. So, let’s take a look at the standard distribution center, its activities, and its role in broader warehouse management. Because people use the terms interchangeably, we often get questions on how distribution centers work and their impact on an eCommerce supply chain.
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