What is a goods distribution center?
A goods distribution center is a central base where goods are shipped, sorted and collected. From there, the goods are then forwarded and processed further. It is also often referred to as a HUB (main transshipment base) or distribution center. The goods are put together by picking according to customer and order before they are delivered to smaller distribution centers.
Typical functional areas of a goods distribution center:
- Incoming goods
- Storage
- Packaging
- Order picking
- Outgoing goods
Nowadays, goods distribution centers are equipped with IT systems that support them in warehouse management and order processing. Companies benefit from significant advantages, such as higher cost savings, faster delivery times and lower stock levels.
