What’s The Difference Between Warehouses And Distribution Centers? - DTS World Cargo (2024)

Read Time: 4 min.

You might occasionally hear the terms ‘warehouse’ and ‘distribution center’ used interchangeably. While the two have some overlap, there are distinct differences between them in terms of what they do and what they mean to logistics providers.

Today we’ll look at what warehouses are, what distribution centers are, what kind of businesses they serve, and the differences between them.

What is a Warehouse?

A warehouse is a large (often humungous) building used to store goods. Their customers are manufacturers, shippers, exporters, importers, and trucking companies—essentially, all commercial businesses that need to store quantities of goods.

Warehouses are designed to store goods until they need to be moved to another location. They often include loading docks for trucks, but they also receive goods from trains, air cargo, or seaports. Most use cranes, forklifts, and other machinery to load, unload, move, stack, and organize goods.

Depending on what types of goods are stored in the warehouse, it might be climate-controlled to house perishable or temperature-sensitive goods, like food and beverage products.

Companies that use warehouses may need a long-term storage solution, extra space for last-mile delivery, or to accommodate seasonal surge.

What is a Distribution Center?

Retailers and wholesalers ship their goods to distribution centers (DCs), which then send them out to the customer or individual stores. DCs are especially critical for ecommerce businesses as they help them service specific areas reliably and efficiently. For example, a DC near a large city center facilitates same-day or next-day delivery of high-volume products. They’re designed for fast in-and-out.

What’s The Difference Between Warehouses And Distribution Centers? - DTS World Cargo (2024)

FAQs

What’s The Difference Between Warehouses And Distribution Centers? - DTS World Cargo? ›

Here are some of the key differences between the two:

Warehouses are mainly used for storing products until they are needed. Distribution centers store products as well as perform product mixing, cross-docking, order fulfillment, and packaging.

Are warehouses and distribution centers the same? ›

Here are some of the key differences between the two:

Warehouses are mainly used for storing products until they are needed. Distribution centers store products as well as perform product mixing, cross-docking, order fulfillment, and packaging.

What is the difference between a warehouse and a distribution center table? ›

The difference between warehouses vs distribution centers is that warehouses are used for long-term storage. Distribution centers can be used for storage as well as for numerous fulfillment and distribution services, such as product mixing, packaging and cross-docking.

What is a warehouse and distribution center operation? ›

Careers in Warehousing and Distribution Center Operations focus on the operation of transportation and distribution facilities including ports, terminals, warehouses, and other types of facilities. All cargo needs to be tracked, sorted, labeled, and loaded accurately and safely.

What are the roles between a warehouse and a distribution Centre? ›

Though both share the responsibility of storing products before sending them to their intended destination, their main differences lie in their priorities: warehouses prioritize efficient storage and inventory management, while distribution centers focus on the timely and accurate movement of goods.

What are distribution Centres also known as? ›

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. The name by which the distribution center is known is commonly based on the purpose of the operation.

What does a distribution center do? ›

What Are Distribution Centers? Distribution centers are logistics facilities that store finished goods before they're picked and packed to fulfill customer orders. In a sense, they can be thought of as specialized, strategically located warehouses.

What are the roles of the warehouse or distribution center include? ›

A distribution center has several essential functions, which include receiving and sorting goods, managing inventory and storage, providing order fulfillment services (also known as fulfillment centers), and managing shipping and transportation.

What is an example of a distribution center? ›

They might be LTL or FTL loads, or they could be individual trucks. A grocery store chain may have a local distribution center, for example. In this location, large shipments of cereal and frozen waffles would come to this central location.

How do distribution centers make money? ›

A distribution company buys products from the manufacturer and then generally resells them for a profit to a retailer or, in some cases, directly to the customer.

What is the difference between an Amazon warehouse and distribution center? ›

While a fulfillment center processes and ships orders directly to consumers, a distribution center is a waystation within the wholesale portion of the supply chain where manufacturers deliver products to be distributed to retail outlets. For example, many grocery chains use distribution centers to stock their stores.

How many warehouses and distribution centers does Amazon have? ›

Locations of Amazon Warehouses

According to CNBC, Amazon has more than 110 active fulfillment centers in the US and more than 185 centers globally. The states with the most Amazon warehouse locations are California, Texas, Illinois, Florida, and Pennsylvania.

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