What is Distribution Center in Retail? Explained

A distribution center in retail is a strategically located facility designed to efficiently manage the receipt, storage, and distribution of goods to various destinations, such as retail stores or directly to customers. Also known as a warehouse or fulfillment center, it plays a pivotal role in the supply chain, ensuring that products are stored, organized, and dispatched in a timely manner. Distribution centers employ technology and logistics systems to streamline operations, optimize inventory management, and facilitate the seamless flow of goods. In the modern retail landscape, distribution centers are crucial for meeting customer demands, minimizing lead times, and enhancing overall supply chain efficiency.