What is a distribution center

The three phrases, 'unified procurement, distribution of delivery sources according to demand, and maximization of profits,' simply summarize the role of distribution markets and goals. According to the definition of 'modern logistics' for distribution centers, 'distribution centers accept a large number of goods from suppliers, carry out operations such as flip loading, sorting, storage, distribution processing, and information processing, and then order according to many customers Facilities that require the preparation of goods and distribution at a satisfactory service level. 'With the continuous changes of the market, the functions of distribution centers are gradually complete, with purchasing functions, storage functions, grouping functions, sorting functions, and packaging functions. The distribution and distribution functions should have a more comprehensive and correct understanding of the distribution center and seek to maximize its effectiveness.

In terms of current market conditions, distribution centers play a better role in reducing the number of transactions and circulation, generating economies of scale, reducing customer inventory, increasing the level of inventory assurance, and establishing business cooperation relationships with multiple manufacturers. Can effectively and quickly feedback information to control product quality. And the distribution center is the material and technical basis for carrying out distribution activities in modern e-commerce activities. According to the characteristics of distribution centers, they can be divided into: storage-type distribution centers, distribution-type distribution centers, and processing distribution centers.

The distribution center is the main bearer of distribution activities, and has the following functions:

(1) Collecting goods. In order to achieve distribution according to user needs, the distribution center must purchase a large number of relatively complete products from many suppliers. Generally speaking, the collection lot is larger than the delivery lot.

(2) Storage. To ensure the needs of normal distribution, a certain reserve should be maintained in the distribution center. At the same time do a good job of keeping these reserves.

(3) Distribution, picking and distribution. After the stored goods are sorted and arranged according to the user's requirements, they will be sent to the designated distribution yard, and then delivered to the user after loading. This is one of the main functions of the distribution center.

(4) Loading and unloading. The process of collecting, storing, sorting, and distributing all requires loading and unloading. The efficiency and quality of loading and unloading operations directly affect the speed and quality of distribution.

(5) Processing. During the distribution process, in order to solve the contradiction between large quantities, few varieties in production, and small quantities and diversification requirements in consumption, according to the different requirements of users for products, the product should be divided, divided, packed, and loaded. .

(6) Delivery. Deliver the matched products according to the arrival point or route. Transportation vehicles can be borrowed from social transportation vehicles, or they can be equipped with professional transportation teams.

(7) Collection, aggregation, storage and delivery of logistics information. The distribution center must have a sensitive and complete information and intelligence system, which is the key to ensuring the smooth operation of the distribution center business.

In order to maximize the role of the distribution center, the location of the distribution center is also very important. There are many factors that need to be comprehensively considered, and 'choice of choice' must be achieved.

The main factors that should be considered when selecting the location of a distribution center are: the distribution of customers, the distribution of suppliers, the conditions of transportation, the conditions of land, the conditions of nature, and the conditions of administration. These points are explained below:

1) Distribution of customers

The first thing to consider when choosing a distribution center is the distribution of the customers it serves. For retail distribution centers, the main customers are supermarkets and retail stores. Most of these customers are located in densely populated places or large cities. To improve service standards and reduce distribution costs, distribution centers are mostly built in areas close to customers located on the edge of cities.

2) Distribution of suppliers

In addition, the location of the distribution center should consider the distribution area of ??the supplier. Because the goods of the logistics are all supplied by the supplier, if the logistics is closer to the supplier, the safety stock of the goods can be controlled at a lower level. However, because the transportation cost of general domestic purchases is borne by the supplier, this factor is sometimes not taken seriously.

3) Traffic conditions

Transportation conditions are one of the important factors that affect the cost and efficiency of logistics distribution. The inconvenience of transportation will directly affect the delivery of vehicles. Therefore, it is necessary to take into account factors such as external transport routes, and future traffic and the development of neighboring areas. The address should be close to important transportation lines to facilitate distribution and transportation operations. The conditions for assessing the convenience of transportation include: highways, national highways, railways, expressways, ports, and traffic restrictions. Generally, the distribution center should try to choose near convenient highways, national roads and expressways. If railways and ships are used as transportation means, it should consider being close to train marshalling stations and ports.

4) Land conditions

Restrictions on land and topography. For the use of land, it must meet the restrictions of relevant regulations and urban planning, and it should be selected in the logistics park or economic development zone. The shape, length, width, and area of ??construction land and the possibility of future expansion are closely related to the planning content. Therefore, when choosing an address, it is necessary to refer to the design content of the warehouse in the planning scheme. In the case of incomplete coordination, the content of the planning scheme needs to be modified if necessary.

In addition, the size and price of the land must also be considered. Considering the existing land price and future value-added conditions, and in accordance with the degree of demand that may be expanded in the future, the most appropriate area is determined.

5) Natural conditions

In the assessment of logistics land, natural conditions must also be considered. Knowing the local natural environment in advance can help reduce construction risks. For example, in the natural environment, there are several natural phenomena such as humidity, salinity, rainfall, typhoons, earthquakes, and rivers. Some places have high humidity near the mountains, some have low humidity, and some have high salins near the sea. These will affect the storage quality of goods, especially clothing products or 3C products ... etc. are very sensitive to humidity and salinity. In addition, natural disasters such as rainfall, typhoons, earthquakes, and rivers have a great impact on distribution centers. You must pay special attention and avoid being infringed.

6) Human resources conditions

In warehousing and distribution operations, the main resource requirement is human resources. Because general logistics operations are still labor-intensive operations, sufficient operating manpower must be available inside the distribution center. Therefore, when determining the location of the distribution center, factors such as labor sources, technical standards, working habits, and wage levels must be considered.

Human resources assessment conditions include the nearby population, traffic conditions at work, and salary levels. If the population near the location of logistics is not large and the transportation is inconvenient, it is not easy to recruit the operators at the grassroots level. If the salary level in the nearby area is too high, it will also affect the recruitment of the operators at the grassroots level. It is therefore necessary to investigate the manpower, work traffic and salary levels in the area.

7) Policy environment

Policy and environmental conditions are also one of the focuses of logistics location assessment. Especially now that logistics land is difficult to obtain, if supported by government policies, it will be more conducive to the development of logistics operators. Policy environmental conditions include corporate preferential measures (land provision, tax reduction), urban planning (land development, road construction plan), regional industrial policies, and so on. Recently, many logistics hub cities, such as Shenzhen and Wuhan, are planning to set up modern logistics parks. In addition to providing logistics land, there are also tax reductions and exemptions that help reduce the operating costs of logistics operators.