What is the main function of a distribution center?

The main function of a distribution center is to store and distribute products. Distribution centers are strategically located facilities that serve as intermediaries between the producers and the end customers. They play a crucial role in the supply chain by optimizing inventory management and ensuring that products are delivered efficiently and effectively to retailers or directly to consumers.

A distribution center allows for the consolidation of various products from multiple suppliers, enabling efficient sorting, packing, and shipping based on customer needs and demand. It also helps in managing stock levels and reducing transportation costs by strategically placing inventory near key markets. This focus on storage and distribution is essential for maintaining a responsive and agile supply chain, ensuring that customers receive their orders promptly.

In contrast, manufacturing products, managing supplier contracts, and conducting market research represent different functions within the broader scope of supply chain management. While they are essential elements of overall operations, they do not encapsulate the primary focus and function of a distribution center. Hence, the selection of the option addressing storage and distribution accurately highlights the core capabilities of a distribution center within the supply chain framework.