What is a Distribution Center

The distribution center is a facility where goods are stored, handled and shipped to resellers or end users. A thoughtfully planned distribution center is critical to the success of a company’s supply chain strategy and, thus, its bottom line. They’re one of the most essential pieces of optimizing order fulfillment.

The timely delivery of goods to a customer, whether that’s a reseller or the final user, is key to any company’s reputation and viability. An optimal distribution center utilizes forklifts, pallet jacks, manual labor and, in some cases, controlled warehousing systems to help get products to their destination on time.

While some may lump distribution centers and warehouses into the same role within supply chain management, there are some important differences. Distribution centers are often not optimal for long-term storage of goods or raw materials. On the other hand, warehouses are designed to store the raw materials needed for finished goods until required for manufacturing. And warehouses are commonly larger than distribution centers, allowing them to hold more raw materials or goods for longer periods of time.

Simply put, the role of a distribution center is to receive goods (often from a company or supplier’s warehouse), store them for a short amount of time, manage the inventory (both in the facility and transit) and move those goods to where they’re needed in a timely manner.

There’s no better place to consider a distribution center in the western U.S. than the Freeport Center. We boast an impressive transportation network of highways, airports and railways. We are 78 buildings on 680 acres. And with buildings ranging in size from 4,000 to 400,000 square feet, we are the ideal business partner for any company, large or small, seeking efficient production, storage, handling and distribution of goods.

Plus, Utah is a “Free Port” state, meaning that inventory stored within its borders is tax exempt from the inventory taxes typically found in many other states. This tax benefit covers all inventory that is shipped to the Freeport Center. Additionally, it covers the inventory when it arrives at its final destination.

An unrivaled transportation network, a wide variety of buildings, Utah’s status as a Free Port state and our centralized location accessible to the major western U.S. markets are why more businesses choose to call the Freeport Center home. Visit our website or call (801) 825-9741 to learn more.