A distribution center

Introduction

A distribution center for a set of products is a warehouse or other specialized building, often with refrigeration or air conditioning, which is stocked with products (goods) to be redistributed to retailers, to wholesalers, or directly to consumers. A distribution center is a principal part, the order processing element, of the entire order fulfillment process. Distribution centers are usually thought of as being demand driven. A distribution center can also be called a warehouse, a DC, a fulfillment center, a cross-dock facility, a bulk break center, and a package handling center. The name by which the distribution center is known is commonly based on the purpose of the operation.

Distribution centers are the foundation of a supply network, as they allow a single location to stock a vast number of products. Some organizations operate both retail distribution and direct-to-consumer out of a single facility, sharing space, equipment, labor resources, and inventory as applicable.

A typical retail distribution network operates with centers set up throughout a commercial market, with each center serving a number of stores.

If you know exactly the demand for a product and it could also be supplied instantaneously, no storage would be required. But still the distribution activities should be able to give immediate answers.

Due to these factors the need for logistics distribution network emerges as a solution to coordinate effectively the problems associated with the uncertainty of demand, cost and duration of transport and profitability requirements of organizations. In these networks logistical charge fundamentally important regulators Warehouses and Distribution Centers as nodes to the points of consumption.

Logistics Vision Distribution Center

A "Distribution Center" is the physical space for installation or for the location of materials and products with the function of coordinating the imbalance between supply and demand and add value to the product by fractional logistic activities (reformatting, labeling, etc.).

Therefore a distribution center should be designed with a view of processes inserted into the chain value added logistics, realizing the new vision of "Bases Logistics Activity" and in order to identify opportunities for competitive advantage based on that vision.

It must be in the right place, designed according to the nature, variety and operations performing products, suitable equipment, and supported by an efficient organization and adequate information system, but fundamentally constructive infrastructure must respond or adapt to the defined logistics processes, with this we mean that before construction is due design the process and then realize the same through a building chord. Also within the facility must be optimal flow with a focus on processes and pulled from the demand (pull system).

Case Analysis

Situations or cases that may occur:

• New Installations

• Expansion of existing facilities

• Reorganization and improvement of existing facilities

Whereas the first situation "New Installation" is the most comprehensive, points

they consider key to their development are:

• Logistics Network

o Analysis to include a distribution center.

o Quantity

o Geographic location - resources and existing infrastructure

o Feasibility

• Products / Markets

o Logistic properties, demand and stock policy

o Forms of supply to a distribution center (port, road transport,

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