The Clear Difference Between Warehouse and Distribution Center

Some people are likely to mention warehouse and distribution center. However, not all of them understand the difference between warehouse and distribution center. The difference between the warehouse and distribution center is the system.

In the old supply chain system, they usually prioritize regulations to increase the quantity of each product, anytime and anywhere. The regulation must be fulfilled because of the lack of information flow and planning mechanisms in the supply chain. Therefore, the warehouse was used for stockpiling supplies and the supplies would be sent out several months after arrived at the warehouse.

Nowadays, the supply chain has evolved and changed in the past hundred years. The modern supply chain is now equipped with better information and technology that can predict the demand for products or goods in the future, they can deliver goods on time. The new supply chain slogan is to be able to deliver the right goods, at the right place and at the right time.

The traditional warehouse cannot fulfill the supply chain demand now and led to the evolution of traditional warehouses into distribution centers. Those are the simple understanding of the difference between the warehouse and distribution center. If you want to know the full information about the difference between warehouse and distribution center, you can check the information below:

Commonly, the warehouse is used to store goods while distribution centers have additional services such as product mixing, order fulfillment, cross-docking, packaging, and others. Distribution center products usually have faster expiration periods compared to the warehouse. Basically, the flow velocity through the distribution center is faster than the flow rate through the warehouse.

Distribution center focused on the customer, this place becomes a bridge between the supplier and the customer. The main function of the warehouse is for storing goods efficiently, while the main function of the distribution center is to fulfill customer demands. Usually, orders from warehouses and retail are sent by distribution centers, not from the main warehouse.

Then, the warehouse usually does not accept external customers, while the distribution center accepts orders from external customers. The mechanism at the distribution center is more complex compared to the warehouse in general. Therefore, the distribution center is equipped with the latest technology to manage the ordering process, warehouse management, transport management, and others.

Those are the difference between warehouse and distribution center and how distribution centers continue to grow over time. However, if you think that the warehouse is no longer needed now, you are totally wrong. The warehouse is still needed to handle some problems that will arise such as when in a month the demand for a type of product will increase and you need to stock the item in your warehouse.

Usually, this happens in the month close to Eid al-Fitr and Christmas. Well, that's the clear differences between a warehouse and distribution center. If you want to build a warehouse or distribution center it's a good idea to build it in a strategic industrial area.

One of the industrial areas that have a strategic location is Karawang New Industry City (KNIC). Located close to the capital city of Jakarta and has plenty of access to make KNIC a suitable area to build warehouses and manufacturing companies.

In addition, KNIC has 6 accesses to national infrastructures such as the Jakarta-Cikampek toll road, Jabodetabek LRT, Trans Java toll road, Jakarta-Bandung Railway, Kertajati International Airport, and Patimban port.

In addition, KNIC is also supported by world-class facilities such as premium electricity, natural gas, and fast internet connections to support the performance of manufacturing companies.


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