What is a Distribution Center?
What is a distribution center? This facility essentially specializes in receiving and storing inventory. The process is incredibly smooth if receiving processes are carefully thought out. A competent distribution center will keep its employees and inventory costs low while maintaining a high level of customer satisfaction. In addition, the ability to handle incoming shipments at a high level will increase the profitability of the company. Here’s a closer look at how these operations function.
First, a distribution center will have two types of departments. One will be dedicated to picking and packing products. The second type of department is the export department, which controls orders that leave the country. This department functions much like the bulk department. It creates and stores pallets for shipment using different standards and haulage companies. Additionally, the quality assurance department will review stock periodically, and will also check for any returned or missing items.
Next, a distribution center should have multiple shipping and receiving departments, as these help improve customer service. Depending on the size of the center, there may be a shipping department for produce, a receiving department for frozen goods, and another for dairy products and dry goods. Many distribution centers have several departments, including warehousing, packaging, and delivery. A distribution center must be efficient to be successful. It should be able to handle a large amount of goods without having to rely on the same suppliers for every single shipment.