Distribution centers refer to facilities that are used for storing, organizing and distributing goods or products. These centers play a crucial role in supply chain management as they help businesses manage their inventory levels efficiently by receiving, sorting, packaging, and shipping orders to retail stores, wholesalers, or direct to customers.
Distribution centers can be owned and operated by companies themselves or managed by third-party logistics providers on a contract basis. They are typically located in strategic locations near major transportation routes such as highways, railroads, or airports for easy accessibility and efficient shipping.
In summary, distribution centers play an important role in the supply chain management of businesses by helping to store, organize, and distribute goods efficiently to their final destinations.