Definitive Guides for Supply Chain Management Professionals (Collection)

2. Distribution Center Concept

Introduction

This chapter introduces the concept of the distribution center, differentiating it from the traditional, one-dimensional warehouse concept. The role of the distribution center in the flow of product through the supply chain is explored, as is cross-docking as a means of managing inbound and outbound freight. Sequencing, forecasting, and postponement strategies wrap up the chapter.

Distribution Center Concept

Up to this point, the term warehouse has been used when describing storage all the way to light manufacturing. Historically, the term warehousing reflected the short-term, medium-term, and long-term storage of inventory at rest within a facility. In contrast, a distribution center takes on ...