What is a primary function of a distribution center?

A primary function of a distribution center is to store goods and manage inventory. This function is crucial because distribution centers serve as the central hub in the supply chain where products are received, stored, and then distributed to retailers or directly to customers. Efficient inventory management within a distribution center ensures that there is an adequate supply of products available to meet customer demand while minimizing excess stock. This helps in optimizing storage space, reducing holding costs, and ensuring timely delivery to the next stage of the supply chain. The ability to manage inventory effectively is vital for maintaining smooth operations and subsequently contributes to overall customer satisfaction.