The distribution center

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A distribution center is an interface in the form of a building complex that functions exclusively within a logistics network. This can be a warehouse, a transshipment point or both in combination. Usually it is the combination in which goods are stored, moved (material flow in intralogistics) and transferred to different means of transport.

In a distribution center, the individual goods are generally put together according to customer and order specifications by means of order picking and distributed to smaller distribution centers via the outgoing goods department. In other words, a distribution center describes an interface function of logisticsin which material flows between producers and customers are organized and handled. Typical functional areas aregoods receipt, storage, picking, packagingand goods issue.

Capacity utilization in the distribution center

On the basis of key figures, one can estimate and plan the internal expenditure and yield of such a handling and storage location.
For example, in goods receipt these are the factors

    • Received items (pallet),
    • incoming shipments,
    • Goods identification,
    • personnel,
    • Unloading techniques,
    • water, rail and
    • street delivery to be considered.

Another variable is the so-called throughput time fulfillment, in which, for example, picking and finishing (packaging) play a major role.

For more information see Job Turnaround TimesandPicking and Packing.


Image copyrights: bugphai – Fotolia

About TUP - Editorial Team

TUP - Redaktion

The editorial staff of DR. THOMAS + PARTNER GmbH & Co. KG has created the platform Logistik KNOWHOW, administrates and coordinates the contributions and creates content for various categories itself. The software manufactory DR. THOMAS + PARTNER from the Karlsruhe area has been implementing customized intralogistics IT systems for over 35 years, with a special focus on warehouse management and material flow. Among its renowned customers are national and international companies of various sizes and industries.

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