Distribution centres in supply chain operations

Abstract

A supply chain consists of all flows and transformations from simple raw materials to purchase of end-items by consumers. Various network nodes perform component fabrication, product assembly or sales. These activities, however, require logistical support, e.g., storage of intermediate or finished goods; consolidation of orders; and transportation. The term, Distribution Centre (DC) denotes a supply-chain node that furnishes coordination of that sort. This chapter highlights seven roles played by a DC. We discuss the measurement of distribution-centre performance, and the information required to manage a DC. These need to be approached differently, depending on the facility's function or role. © 2005 Springer Science+Business Media, Inc.