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Distribution center | ||
A distribution center for a set of products is a warehouse or other specialized building with refrigeration or air conditioning which are supplied by transport, such as aircraft, truck, rail or ship, and then re-distributed to retailers or wholesalers. The food distribution system of the Distribution centers are foundation of a retailing network. They allow a retail location to stock vast numbers of products without incurring an explosion in transportation costs. The way a typical distribution network operates is to have centers setup throughout a commercial market. Each center will then service a number of stores. Large distributions centers for companies such as Wal-Mart service 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. Because a large retailer might sell tens of thousands of products from thousands of vendors, it would be impossibly inefficient to try to ship each product directly from each vendor to each store. Many retailers own and run their distribution networks, while smaller retailers may outsource this function to dedicated logistics firms that coordinated the distribution of products for a number of companies. Third-party logistics providers like Ozburn-Hessey Logistics can provide these services. ScaleLarge 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 StorageAlthough 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 retailers 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. In addition to shipping quickly, preparing for busy shopping seasons requires retailers to stock up on product ahead of time. For many retailers, the Christmas shopping season is the busiest of the year. Ahead of this time, a distribution center might double the amount of inventory on hand and then draw this level down through the shopping season. This strategy is especially important for imported items. With lead times measured in weeks or months, stocking these products in a distribution center is often the only way to maintain in-stocks at the store. New seasons, holidays or special promotions may also prompt a retailer to store specific items prior to a large rollout or demand forecast. Copyright 2008 - France BtoB from Wikipédia
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