A Distribution Centre (DC) is a specialised facility where products are stored, sorted, and dispatched to retailers, collection points, or directly to customers. It is sometimes referred to as a logistics hub or fulfilment centre.
Why DCs Matter
Distribution centres are the backbone of efficient supply chains. They enable businesses to manage inventory, reduce delivery times and optimise costs. A well‑run DC ensures that products are available when and where customers need them, directly influencing customer satisfaction and loyalty.
How DCs Work
Inbound logistics: receiving goods from manufacturers or suppliers.
Storage and inventory management: organising products for quick retrieval.
Order processing: picking, packing, and preparing shipments.
Outbound logistics: dispatching goods to stores, collection points, or customers.
Example: An ecommerce retailer uses regional distribution centres to shorten delivery times and balance inventory across markets.
Common Use Cases
– Fashion retailers centralising stock for omnichannel fulfilment.
– Grocery chains managing perishable goods with temperature‑controlled DCs.
– Logistics providers optimising DC locations to reduce transport costs and emissions.
Related Terms
Fulfilment
Supply Chain
Inventory Management
Last‑Mile Delivery
Click and Collect
