Why You Need A Distribution Centre

Time: Aug 17,2023 Author: SFC Source: www.sendfromchina.com

The development of ecommerce today requires more than just traditional warehouses for inventory storage, it needs cut-on-edge technology, expertise, and custom processes to streamline order fulfillment.

That's why advanced distribution centres are better substitutes for traditional warehouses. Except for storing inventory in an old warehouse and fulfilling orders themselves, online sellers also need value-added services, such as custom packaging, and multiple shipping solutions to meet customers' demand.

In this blog, we will talk about what is the distribution centre, and the advantages of distribution centres.

1. What is the distribution centre

According to Wikipedia, "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." and " 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."

But today's distribution center has developed to be a comprehensive integration that is a hub to store inventory, streamline the picking & packing process, custom packaging, and ship parcels out to the next location or destination with Warehouse Management System (WMS), Warehouse Security System, and other modern systems. The distribution centre is also known as fulfillment centre, fulfillment center, or distribution center.

2. What are the advantages of a distribution centre

Storage management

Compared with warehouses, distribution centres are more flexible. Typically, distribution centres are operated by third-party logistics (3PL) companies which offer warehousing as well as fulfillment services. Apart from storing inventory, distribution centers will also streamline the fulfillment process, handle orders, and ship parcels out to customers efficiently.

Reduced Overstocking and Understocking

By analyzing historical data and current trends, distribution centers can predict what products are likely to be in high demand. This allows businesses to adjust their inventory levels accordingly, avoiding situations where they're left with excess stock that might become obsolete.

Enhanced Logistics and Shipping

The strategic positioning of distribution centers plays a pivotal role in ensuring timely and cost-effective deliveries. By strategically placing DCs in proximity to major markets, businesses can significantly reduce shipping distances and cut down on transit times.

Supply Chain Resilience

In an unpredictable world fraught with disruptions, having a buffer in the form of distribution centers is a lifesaver. When a supplier faces a production delay due to unforeseen events, a distribution center can step in and bridge the gap, ensuring that customers' orders are fulfilled without major hiccups.

3. How does SFC distribution centre improve your business

30-days free storage: SFC Express offers 30-days free storage in Shenzhen and Yiwu warehouses.

Custom packaging: SFC Express also features custom packaging services, such as corner protector, bubble wrap, and so on.

Multiple shipping solutions: SFC Express partners with more than 70 carriers over the world, including USPS, UPS, FedEx, DHL.

Automatic order fulfillment: After integration with SFC system, product will be automatically picked & packed, and shipped out to your customer's home.

FAQs

1. How do distribution centers contribute to faster order fulfillment?

Distribution centers strategically positioned near target markets reduce shipping distances, ensuring quicker deliveries and higher customer satisfaction.

2. Can distribution centers help businesses expand into new markets?

Absolutely! With distribution centers in key regions, businesses can swiftly establish their presence in new markets without lengthy shipping delays.

3. How do distribution centers handle disruptions in the supply chain?

Distribution centers act as buffers during disruptions, ensuring that orders are fulfilled even when primary sources are affected.

4. Are distribution centers only beneficial for large corporations?

No, distribution centers offer benefits for businesses of all sizes by optimizing inventory management, reducing costs, and enhancing operational efficiency.

5. How can businesses overcome the challenges of integrating technology into distribution center operations?

Businesses can seek partnerships with tech experts to ensure a smooth integration of technology into their distribution center processes.