What are Distribution Centres?
Distribution centres are specialized buildings that are designed for the storage and distribution of goods. They play a crucial role in the supply chain, serving as a hub where products are received from suppliers, stored until they are needed, and then shipped to retail stores, other businesses, or directly to consumers.
Key Functions of a Distribution Centre:
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Receiving: This is where goods are unloaded from trucks, trains, ships, or planes and checked for accuracy and quality.
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Storage: Products are stored in a specific location within the warehouse until they are needed. The storage system often uses a combination of pallet racking, shelving, and automated storage and retrieval systems (AS/RS) to maximize space and efficiency.
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Order Picking: Workers, often called pickers, retrieve products from their storage locations based on customer orders. This can be done manually or with the help of automated systems.
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Packing: Once an order has been picked, it is packed for shipment. This often includes placing items in a box, adding packing materials, and sealing and labeling the package.
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Shipping: Packed orders are loaded onto trucks, trains, ships, or planes for delivery to their final destination.
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Returns Processing: Many distribution centres also handle returns, inspecting returned items, restocking them if they are in sellable condition, or disposing of them if they are not.
Distribution centres can vary greatly in size, from small warehouses serving a local area to massive facilities that handle international logistics. They are typically located near major transportation hubs to facilitate quick and efficient distribution of goods. Some distribution centres are owned and operated by retail companies, while others are run by third-party logistics providers (3PLs).