If you’re considering starting any type of fulfillment business, you’re probably asking yourself: what’s the difference between a warehouse and distribution center? Before making any hasty decisions, let’s compare and contrast.
What is a Warehouse?
Warehouses are commercial buildings used to store goods. The purpose of a warehouse is for storage uses. They’re designed to receive goods directly from railways, airports, or seaports and are equipped with cranes and forklifts for moving and organizing goods. They have loading docks to load and unload goods and are usually located in industrial areas. Some warehouses can store groceries, perishables, raw materials, packing foods, spare parts, and more.
Manufacturers, importers, exporters, wholesalers, and transport businesses use warehouses. They’re better suited for businesses that need long-term storage options.
What is a Distribution Center?
Distribution centers are specialized buildings that store products to be redistributed to another location or directly to customers. The purpose of a distribution center is for the retailer to ship the product to the center and then ship the product to the customer. They’re normally located near main roadways and highways so transport trucks can drop off and pick up items. Many are part of a larger network of distributors, set up to serve a large area. Unlike warehouses, distribution centers are considered to be demand driven and fast-paced.
Online retailers and ecommerce businesses use distribution centers. They’re better suited for businesses that require fast intake and rapid shipment of items.
What’s the Best Choice for You?
Warehouses are designed for businesses that need long-term storage. Distribution centers are designed for businesses that need items shipped out immediately.
Whether you need a warehouse, distribution solutions, or both, you can have all of your business demands met at American Western Distribution. Contact us today and run your fulfillment business efficiently.
