Goods distribution center

What is a goods distribution center?

A goods distribution center is a central base where goods are shipped, sorted and collected. From there, the goods are then forwarded and further processed. It is also often referred to as a HUB (main transshipment base) or distribution center. The goods are assembled by picking according to customers and orders before being delivered to smaller distribution centers.

Typical functional areas of a goods distribution center:

  • Goods receipt
  • Storage
  • Packing
  • Picking
  • Outgoing goods

Nowadays, goods distribution centers are equipped with IT systems that support them in warehouse management and order processing. Companies derive key benefits from this, such as greater cost savings, faster delivery times and lower inventory levels.


Logistik Lexikon

Image: Gorodenkoff / Shutterstock

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