What type of facility is a Distribution Center (DC)?

A Distribution Center (DC) serves primarily as an inventory holding warehouse that facilitates the movement of goods through the supply chain, specifically from manufacturers to retailers or directly to consumers. It is not a retail outlet, as its purpose is to manage inventory rather than sell directly to consumers. In contrast, while it does hold inventory, it is distinct from manufacturing warehouses that focus on raw materials or in-process goods. A DC is designed to optimize the storage and distribution process by allowing for the sorting and pooling of products for efficient onward transportation, making it a critical component in managing logistics. This function also differentiates it from transport hubs, which are primarily concerned with the movement of goods rather than storage, and service points, which focus on customer service rather than inventory management.