What is a distribution center mainly used for?

A distribution center is primarily utilized for storing goods that are intended for distribution to retailers or directly to customers. Its main focus is on inventory management and the rapid movement of goods, which allows for more efficient supply chain operations. Unlike manufacturing facilities, which are designed for producing goods, a distribution center serves as a hub where products can be gathered, stored temporarily, and then redistributed based on demand. This setup helps streamline logistics, reduces delivery times, and optimizes the overall flow of products from suppliers to end customers. The strategic positioning of distribution centers within a supply chain helps ensure that the right products are available in the right quantities and at the right locations, thereby enhancing supply chain efficiency and customer satisfaction. This differentiates it distinctly from other functions such as product research and market analysis, which focus on different aspects of business operations.