What is the primary function of a distribution center?

The primary function of a distribution center is to store and distribute goods to retailers or customers. This facility plays a crucial role in the supply chain by serving as a hub where products can be received from manufacturers, stored until needed, and then efficiently distributed to various locations.

Distribution centers are designed to optimize the flow of goods, making it easier for retailers to manage inventory levels and ensuring that products are delivered promptly to meet customer demand. By consolidating products from different suppliers and facilitating quick dispatch to multiple end users, distribution centers help reduce lead times and improve overall supply chain efficiency.

In contrast, manufacturing focuses on the creation of products, which is not the primary role of a distribution center. Tracking shipment movements and customs clearance are also important logistics functions, but they relate to broader logistics and supply chain processes rather than the central purpose of a distribution center.