The role of distribution centers

The logistics distribution center has always played a leading role. It may not be understandable to many people, but the fact is so. The logistics distribution center has played a role in the development history of freight logistics. Its role has directly promoted the logistics industry. Development, then what is the role of the logistics distribution center?

1. Reduce purchase cost. Due to the unified purchase and distribution, large-scale purchases can be formed, forming a strong bargaining ability against suppliers, and forcing suppliers to minimize the price, which is the root of the scale advantage of chain marketing.

2. Reduced the inspection, purchase and storage costs of branches. Since the logistics and distribution center can use batch, system, and efficient procedures to uniformly register, inspect, and store the goods, it greatly simplifies the procedures for purchasing goods at each branch, saving personnel and reducing costs.

3. Reduced the warehouse area and the inventory level of each branch, and improved the flexibility and efficiency of operation. The chain stores only need to submit an order plan to the logistics and distribution center according to the sales situation, and the required products can be delivered immediately.

4. Reached the economic scale of logistics operations. The bulk purchase by the logistics center guarantees a uniform price variety and quality of the goods, centralized delivery, and economical and reasonable transportation routes and modes are selected, thereby promoting a reduction in logistics costs.

5. Master the controlling power of the logistics industry. In addition to reducing costs, the establishment of a logistics distribution center is more important for chain companies to be able to grasp the dominance of the distribution industry. The so-called dominance of the circulation industry includes the right to control from the beginning of the product plan to the price setting, especially the power to express clearly to the supplier the right to purchase the product at a certain price.

6. Promote business development and expansion. Traditional wholesale warehouses are usually purchased by retailers, but general stores have long business hours, fast product turnover, limited manpower, and few retailers go to the warehouse to pick up the goods in person. The logistics and distribution center solved the worries of the branch and focused on the growth of chain store sales and profits.

The logistics distribution center not only has the above functions, but also has transportation functions, distribution processing functions, storage functions, packaging functions, loading and unloading functions, logistics information processing functions, and also the following value-added functions: demand forecasting functions, settlement functions, Logistics system design consulting function, logistics education and training function.

The above are the main functions and functions of the logistics distribution center. For enterprise-level cooperation, whether the two sides can reach a cooperation depends on whether they meet the above points. This is also a yardstick of a logistics distribution center. The more functions, the more the logistics. The more complete the distribution center services, distribution is a very important factor and the support for many companies' success.