In simpler times, it was possible to walk along the aisles of a warehouse, or distribution center, and not notice much difference. Both were used to store and distribute products. However, everything is subject to change and both the warehouse and the distribution center have changed in their purpose.
Are you familiar with the differences between a warehouse and a distribution center? You’re about to find out.
What is a Warehouse?
A warehouse is where goods are kept. This sounds a little too simple. You know more about what happens in a warehouse if you are able to run it or have an understanding of its operations.
Orders must be placed in order to store goods at a warehouse. The goods are then received, scanned and tracked, and picked up when it’s time to ship.
Warehouses are not places where goods are made or processed. These items are retrieved from warehouses after they have been received, identified and verified.
You will find warehouses everywhere. These buildings are often found around railways, seaports, and airports. Forklifts and cranes are used to transport shipping containers and pallets from the port into the warehouse. There, the items are scanned and cataloged and then shelved.
Depending on the type of warehouse, the interior might be temperature-controlled so that perishable goods, like produce, do not deteriorate while in storage. You can also warehouse pet food, bulk storage and electronic storage.
What is a Distribution Center?
Distribution centers are often described as warehouses or special buildings that have been stockpiled with products that will either be distributed to wholesalers or retailers or sent directly to customers. The order fulfillment process begins when someone places an order.
A distribution center can also be referred to by the following terms: warehouse, cross dock facility, package handling center or fulfillment center.
It is important to remember that a distribution center can also be called a warehouse but you cannot call a general warehouse an DC. If the warehouse handles order processing or fulfillment, it is not a distribution center. Because the distribution center’s primary purpose is to receive orders and get the items sent out, it is also called a distribution center.
Light assembly, quality control, and repackaging are some of the services that distribution centers may offer.
There are differences between Warehouse and Distribution Center
The differences between warehousing and distribution centers have become more evident as supply chains have evolved and become more complex. You might think that these differences are semantic and there are no dissimilarities. However, this is false.
Distribution centers and warehouses have distinct characteristics. They are both used for receiving, storing and managing goods. But there’s more.
These are the main differences between them:
- Warehouses are used primarily to store products until they are required. Distribution centers are used to store products and perform cross-docking, product packaging, and order fulfillment.
- Warehouses can store products for longer periods. Distribution centers, on the other hand have a quicker flow from storage to the customer or store. This means products are less likely to remain in stores for long periods of time.
- Because it’s where the items are packed and shipped out, distribution centers can be considered the bridge between consumers and suppliers. The warehouse’s role is less about the consumers and more about storing the goods.
- Distribution centers are often used to process orders for warehouses and retail. Because warehouses don’t typically serve customers the same way as a distribution center, this is why.
- Warehouse operations are simpler than those at distribution centers. Warehouses are less functional than distribution centers, which handle order processing, logistics management, warehouse management and inventory management.
Both are still essential parts of the supply chain. It is common to see warehouses and distribution centres being used to meet seasonal needs, as both long-term and temporary storage are essential.
Are you ready to optimize your warehouse or distribution center?
Although the differences between warehouses and distribution centers are subtle, they both require management. Although warehouses and distribution centers serve different purposes, both can have an impact on customer satisfaction.
