What Happens in a distribution center?

The logistics strategies of many retail organizations are increasingly characterized by the development of their own logistics networks within procurement logistics, gradually taking over large parts of the distribution logistics previously handled by manufacturers.

By applying just-in-time principles, the goal is to achieve inventory-free, demand-synchronized supply of retail outlets and customers.

In retail, these integrated procurement and distribution hubs are referred to as distribution centers. Their main task is to convert supplier-specific deliveries into store-specific shipments, thereby avoiding the buildup of inventory.