A distribution center is a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs. Shipments of goods arriving at a warehouse or distribution center are not put into storage at all, but are instead immediately broken down and re-organized for re-shipment to other destinations. The sorting products in distribution center can be of many varieties: by type of goods, by an order required, by date as in perishable foods, or by value or as goods in bonded condition.
Distribution center fall into two types. The first type of distribution center is private warehouse. Private warehouses are those that are operated by the company that owns the products. The second type of distribution center is the public warehouse. Public warehouses are for-profit organizations that contract or lease various warehousing and distribution services to other companies. Whatever distribution warehouse type that company have, the most important decisions regarding distribution warehouse is where to locate them.
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