The distribution center

1. April 2025

In the goods distribution center, the inventory delivered by the industry is received, temporarily stored, and then broken down into individual commissions for delivery to the appropriate intermediaries or end consumers. It is an important hub in the distribution network as it is responsible for a fast flow of materials between companies and customers.

Elements in the goods distribution center

Important elements of a goods distribution center include the warehouse management system, the materials handling technology and the picking strategy. Automatic sorting and distribution systems can also be used in larger goods distribution centers. The inventory is usually delivered on pallets and then passes through the various warehousing processes: storage, picking, packing and shipping. The inventory usually does not remain in the distribution center for more than 24 hours. It is not used as an intermediate or final storage location, since each item is already destined for a recipient.

Distribution centers are supplied by decentralized distribution warehouses. A well-organized distribution network and a goods distribution center offer advantages such as cost savings, more efficient goods handling, fast delivery times and maintaining the availability of goods. The resulting increase in transport costs pays off in relation to the savings.

For more information on transport, see transport logistics.