Distribution center

A distribution center for a set of products is a warehouse or other specialized building with refrigeration or air conditioning which is stocked with products to be re-distributed to retailers or wholesalers. The food distribution system of the United States is dominated by distribution centers, which have helped to cut the cost of supplying food in the United States, and make food only a small part of the cost of living there. Distribution centers are foundation of a retailing network. They allow a retail location to stock vast numbers of products without incurring an explosion in transportation costs. The way a typical distribution network operates is to have centers setup throughout a commercial market. Each center will then service a number of stores. Large distributions centers for companies such as Wal-Mart service 50-125 stores. Suppliers will ship truckloads of products to the distribution center. The distribution center will then store the product until needed by the retail location and ship the proper quantity.
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