They are often used interchangeably with Warehouse. In contrast to a traditional warehouse, a distribution center temporarily stores inventory until orders get fulfilled and then sends them to their final destinations.

What is a Distribution Center?
  • A distribution center is a facility that receives, temporarily stores, and distributes goods according to orders.
  • Distribution centers handle products, order fulfillment, and manufactured goods before being shipped out to wholesale or retail customers. These centers connect suppliers with their customers.

They serve retail stores directly, so they're customer-centric. Product is typically shipped to these centers, serving a specific retail location. Walmart will ensure that any product you order online and pick up in-store is delivered to the nearest center if you decide to pick it up in-store.

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