A lot of logistics professionals use the terms warehouse and distribution center interchangeably. Some of them even say that “there is effectively no difference between a warehouse and a distribution center”. So, how different is a distribution center from a warehouse? Let me tell you upfront that they are as different as a modern 21st century supply chain is from a traditional supply chain.
The simple rule in traditional supply chains was to store “maximum possible quantity of every product, everywhere, every time”. This rule had to be followed because of lack of information flow and planning mechanisms in the supply chain.
Bill Carston, warehouse selector, Deliver Group Company
Supply chains have evolved and are much different from what they used to be say 2-3 decades back. Modern supply chains use better information and intelligence. They can predict product demand ahead of time. This helps them plan and deliver items when they are needed.