• a warehouse or other specialized building, often with refrigeration or air conditioning, which is stocked with products (goods) to be re-distributed to retailers, to wholesalers or directly to consumers. A distribution center is a principal part, the "order processing" element, of the entire "order fulfillment" process. Distribution centers are usually thought of as being "demand driven". A distribution center can also be called a warehouse, a DC, a fulfillment center, a cross-dock facility, a bulk break center, and a package handling center. The name by which the distribution center is known is commonly based on the purpose of the operation. For example a "retail distribution center" normally distributes goods to retail stores, an "order fulfillment center" commonly distributes goods directly to consumers, and a cross-dock facility stores little or no product but distributes goods to other destinations.

• are the foundation of a "supply network" as they allow a single location to stock a vast number of products. Some organizations operate both retail distribution and direct-to-consumer out of a single facility, sharing space, equipment, labor resources and inventory as applicable.

The way a typical retail distribution network operates is to have centers set up throughout a commercial market. Each center will then serve a number of stores. Large distribution centers for companies such as Wal-Mart serve 50–125 stores. Suppliers will ship truckloads of products to the distribution center. The distribution center will then store the product until needed by the retail location and ship the proper quantity. distribution center can be co-located at a logistics center.

Scale

Large distribution centers might receive and ship more than ten thousand truckloads each year, with an individual store receiving only a couple trucks per week up to 20, 30 or more per week. The distribution centers can range in size from less than 50,000 square feet (5,000 m²) up to the largest approaching 3 million square feet (300,000 m²).

Storage

Although the primary role of a distribution center is to receive large quantities of products and ship small quantities to individual stores, an important secondary role is storage. Many retaile

rs have prioritized having as many items in stock at one time as possible. To conserve space, minimize inventory costs, and maximize the variety they offer the retail might only stock one or a few items of a particular product. This requires the ability to ship a replacement quickly once an item is sold. By keeping product on hand in the distribution center, the retailer can ship a replacement almost immediately after a product is sold.

Storage locations and storage containers Goods (products) arrive and are stored in a distribution center in varying types of storage locations and containers suited to the product characteristics and the amount of product to be transported or stored. These types of locations and containers have specific industry accepted names. There are specialized pieces of equipment (material handling equipment or MHE) that are used to handle the various types of containers.

• Intermodal containers (shipping containers) are used for the efficient transportation of goods. There are standards that specifify the volume and dimensions of containers to facilitate efficient handling.
• Pallets are one of the most commonly used means to store and move product in a distribution center. There are many specialized devices (MHE) used to handle pallets - see forklift truck, pallet jack, pallet inverter, and unit load ASRS. Pallets are stored on the floor, may be stacked, and may be stored in pallet rack
• Gaylords are large single boxes usually connected or attached to a pallet
• Cases and Cartons are boxes usually containing many items. In distribution centers there is a generally accepted distinction made between the terms carton and case although both are boxes. Goods are received and stored in cartons. Goods are shipped in ca ses. A stored carton is called a case once it has been picked or pulled for shipment.

Totes are reusable containers used to hold and transport goods.

• distribution centers have three main areas and may have additional specialized areas. The three main areas are the receiving dock, the storage area and the shipping dock. In small organizations it is possible for the receiving and shipping functions to occur side by side, but in large centers, separating these areas simplifies the process. Often a distribution center will have dedicated dock doors for each store in its shipping area. The receiving area can also be specialized based on the handling characteristics of freight being received, whether the product is going into storage or is going straight to a store or by the type of vehicle delivering the product.

Planning a distribution center

A number of key components go into the overall planning of a distribution center i

n order to maximize its efficiency. If the distribution center is relying on a conveyor system suspended from the ceiling, consideration needs to be given to the weight-bearing capacity

of the ceiling joists. If the conveyor system runs along the floor, than consideration n

eeds to be given to where columns are placed in the design stage, particularly as they relate to the flue space between pallet rack frames. Other considerations in the planning should include attention to such areas as slotting, product replenishment, storage media, and power requirements.

Simple distribution center outline

Because many distribution centers service both large and small clients, especially those which store a specific type of service as opposed to those which serve a specific company, roles and departments are generally more complicated. A simple distribution center which serves many clients a specific theme or type of service may include:

• Goods In: Usually containing specialised container unloading equipment and workers, including pallet wrapping, conveyor belt unloaders (as used on 40ft shipping containers), forklift drivers and administrative staff
• Bulk: As a rule, such a department would control and ship larger orders, or o rders which contain only full cartons/boxes. Such a department would contain FLT drivers to load containers and wagons, and Man-Up or Combi forklift trucks to unload full pallets from warehouse racking.
• Break-bulk: Break Bulk(break bulk is also know as split case) is a lower capacity version of the Bulk department, orders usually contain part boxes, or items which do not necessitate pallets. Due to the number of smaller customers a distribution center may serve, a break bulk department may need more workers than Bulk do. A break-bulk department usually uses trolleys or, for palleted/heavy orders, small electric PPT or Walkie Low Lift trucks. Items shipped by break-bulk are usually stored in pick, which are usually the bottom two pick-faces of warehouse racking. A Pick-Face is the space on such a racking system that a pallet can be loaded onto.
• Export: An export department would control orders which are leaving the country of the distribution center, this department is almost identical in function to a bulk or break-bulk department, however workers in this department would have to build pallets to conform to different standards and sizes. An export department would also use different shipping containers or haulage firms.
• QA: A QA department would perform periodic checks of random samples of stock to check quality, this includes from the warehouse racking, Goods In and returned stock. This department may also take on cycle count duties to find missing stock.
• Administration
• Packing and Production: In many distribution centers it is not feasible to store stock in many different packaging styles or quantities, and whilst it may cost a cu

  

  stomer more to do so, many customers, such as supermarkets, prefer their own packaging on stock. Because of this, packing benches are used to take raw items, such as a box of balloons, and pack them at a specific unit quantity, which are then packed into cartons and labeled accordingly for a customer. In many circumstances this may be cheaper to do at a distribution center than for a customer or client to do.

Other departments that a distribution center may have include:

• Transportation – arranges and coordinates shipments in and out of the DC
• Dedicated Product Departments – divisions can be based on handling characteristics or storage characteristics. For example, refrigerated and non-refrigerated [Meat & Produce, Frozen, Dairy/Deli, Dry] each of the three areas have both shipping and receiving departments as well.

Distribution Centers also have a variety of supporting departments. These include human resources, maintenance/facilities operations, production control and accounting.