Distribution centers can be very beneficial for some industries. The way distribution centers work are specific to each industry and each company that uses them. There are common benefits and reasons why many industries use them and what they can accomplish.
What is a distribution center?
A distribution center is like a warehouse which items are stocked before they go out to their retailers. This can expedite the process of shipping items out to customers. As companies grow and have common shipping channels to parts of the country, it is common for them to get multiple distribution centers so that they can ship their products out to their clients faster. Some of the most common industries that use distribution centers are online relators, ecommerce companies, and fortune five hundred companies that have physical locations.
Warehousing and local shipping
Depending on the industry, distribution centers can be used for both distributing their retail to stores, as well as direct to the consumer buying the product. Warehousing is known more for storing products until a store needs them to be distributed. Local shipping uses distribution centers so that all of the items being shipped are in one place.
Industries & main benefits
- Better Control. You are able to create a centralized commonplace for items to be received at, then once ready, shipped out to clients.
- Monitor your inventory. This is helpful because when everything is in one place, you are able to quickly take inventory and see which products are selling faster, and what you might need to get ahead of ordering on.
- Your products are accessible. Everything is in one place, if an item gets changed or cancelled you are able to quickly and easily changed.
- Save time. Having everything all in one place and organized can help you from having to run around looking for things, or figuring out what happened, or what needs to take place next.
Having a distrubtion center doesn’t make sense for every company or every business. It’s important to really understand how your company operates, what your pain points are, and if having a centralized distrubtion center would make the most sense.
If you have any questions on if a distrubtion center is right for you and your industry, give us a call today at 978-232-9190 or contact us on our website. Let us know how we can help you and answer any potential questions you may have.