Glossary for Industry Terms

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Distribution Center – DC

What is a Distribution Center?

A Distribution Center (or DC) is a facility that operates as a connection in the logistics chain for order fulfilment.

A distribution center can operate as a warehouse, a fulfilment center, pick and pack station or any number of other operations. Depending on the company (whether it is owned by a brand or works independantly) a DC center can function as a storage location and helps organization of goods.

Shipment and packaging are often large components of DCs and this aspect can also be outsourced to 3PLs or third party logistics providers.

Another advantage of centralizing this process is that allows companies to manage warehousing and distribution using a single team with fixed shipment costs.

Utilizing an in-country distribution center allows brands and distributors an easy way of shipping goods or products from a manufacturer into a country or region.

A secondary advantage of a centralized location for distribution is a reduction in the complexities around tariffs, landing costs and other local taxes.

Streamlining the supply chain helps for faster order fulfilment and a smoother transition from manufacturing to distribution.

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