Retailers and manufacturers rarely ship every order from the factory floor. A distribution center is a facility that receives goods in bulk, stores or sorts them, and ships them onward to stores, other warehouses, or end customers.

Unlike pure storage warehouses, distribution centers emphasize throughput. Cross-docking, high-speed picking, and tight carrier schedules keep product moving. Location decisions weigh proximity to demand, transport infrastructure, and labor availability.

Warehouse management systems direct put-away, picking, and packing. Performance metrics focus on order cycle time, accuracy, and cost per unit handled. A well-run distribution center acts as a shock absorber between production variability and customer demand.

• Facility for receiving, sorting, and redistributing goods
• Designed for throughput more than long-term storage
• Serves stores, other sites, or end customers
• Measured by speed, accuracy, and handling cost