Author: Jason Martin
Reviewed by: Ecommerce Operations Lead
Last updated: October 30, 2025
Executive TLDR
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A distribution center turns inbound stock into fast, accurate outbound orders with clear rules and measurable SLAs.
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Clean ASNs, booked docks, and location control make inventory sellable in 1 to 3 days.
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Barcode first pick and pack, a simple packaging matrix, and rate shopping protect accuracy and margin.
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A central Midwest hub reaches most customers by ground in 1 to 3 days at lower cost than air.
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Track five KPIs daily to keep the floor honest, dock to stock, order accuracy, on time ship rate, billable vs actual weight, and cost per order.
Want a DC that ships clean and scales without chaos — Talk to an Expert
Table of contents
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What a distribution center does
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Inbound, how inventory becomes sellable
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Outbound, how orders leave right and on time
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Value add, kitting, and compliance
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Network strategy, why centralize first
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The 30 day distribution center plan
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Why Product Fulfillment Solutions
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FAQ
What a distribution center does
A distribution center receives, stores, and ships products with speed and accuracy. The core flow is simple, receive, put away, pick, pack, ship, and handle returns. The difference between good and great is discipline. Clean data, labeled locations, scan at pick and pack, and packaging rules that remove guessing.
Inbound, how inventory becomes sellable
Advance ship notices that match
Send ASNs with PO, SKUs, barcodes, counts by carton and pallet, and dimensions. Carton and pallet labels match the file so receiving scans, not guesses.
Booked docks and an exception lane
Post a dock schedule and staff to it. Create an exception lane for overages, shorts, and damages so the main flow never stalls.
Dock to stock in 1 to 3 days
From truck arrival to available in the system within three days. If you need overflow, expand cleanly with warehousing and storage solutions.
Putaway that people can see
Large, high contrast bin IDs. Slot fast movers near pack. Separate look alike SKUs. Keep shared views current under real time information.
Outbound, how orders leave right and on time
Pick rules that hold under pressure
Batch single line orders for speed. Cluster or wave pick multi line. Always scan at pick to stop swaps.
Pack with a posted matrix
Use the smallest safe mailer or carton by product family. Add inserts only when they help, instructions, care, reorder path. Print labels only after the final scan at pack. Learn more under pick and pack services.
Rate shop every label
Blend national and regional carriers. Choose the cheapest service that still hits the promise day. Protect margin with discounted shipping rates.
One daily cut off
Publish a single cut off and staff to clear the queue to zero. Measure on time ship rate daily.
Value add, kitting, and compliance
Kitting and assembly off the main line
Build sets and subscriptions without slowing DTC. Use clear BOMs with photos and barcodes, then finish to sellable kits. See kitting assembly services and subscription box fulfillment.
Retail and marketplace standards
Unit, inner, carton, and pallet label templates keep routing guides simple. Connect trading partners with EDI solutions and connections and prep for marketplaces through FBA prep services when needed.
Dated and regulated products
For supplements, vitamins, and cosmetics, capture lot and expiry at receiving and enforce FEFO at pick. Review health and wellness fulfillment services.
Returns that do not clog the floor
Stage returns to a small triage lane, restock clean items, quarantine questionable items, and log destruction when required.
Network strategy, why centralize first
Most brands do not need a dozen nodes. Start with one central Midwest hub to reach a large share of buyers in 1 to 3 days by ground. Keep one inventory pool and route by promise and cost across DTC, retail, and marketplaces. Scale with data, not vibes. Explore 3PL fulfillment and ecommerce fulfillment services.
The 30 day distribution center plan
Week 1, lock the inputs
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Product master complete, title, barcode, dimensions, weight, case and inner, hazard flags.
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Label placement rules set for unit, inner, carton, and pallet.
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Packaging matrix drafted by product family.
Week 2, inbound discipline
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ASN format finalized with sample labels.
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Dock schedule posted and staffed.
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Exception lane defined and measured.
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Start reporting dock to stock daily, target 1 to 3 days.
Week 3, floor and outbound
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Print large bin IDs and slot fast movers near pack.
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Turn on scan at pick and a second scan at pack.
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Publish one daily cut off and staff to it.
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Rate shop every label.
Week 4, pilot and tune
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Pilot with your top movers for three to five days.
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Track order accuracy, on time ship rate, handling time, billable vs actual weight, and cost per order.
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Fix outliers, then roll the playbook to the full catalog.
Why Product Fulfillment Solutions
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Central U.S. hub in Cincinnati for national 1 to 3 day ground coverage.
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Barcode first receiving aligned to accurate ASNs for predictable dock to stock speed.
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Pick and pack standards with right size packaging and a final scan before label print.
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Small parcel optimization that rate shops every label.
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FEFO and lot or expiry control built for consumables.
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Retail and marketplace readiness with EDI solutions and connections plus simple templates.
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Clear visibility for orders, inventory, and exceptions under real time information.
FAQ
What is the difference between a warehouse and a distribution center
A warehouse stores product. A distribution center stores product and ships orders daily with defined SLAs, scanning, and packaging rules.
How fast should receiving make inventory sellable
Set 1 to 3 day dock to stock and report it every day. Fix misses the same day.
Do I need multiple DCs to be fast
Start centralized. Add nodes only when data shows better service and lower cost.
How do I keep accuracy high at scale
Scan at pick and again at pack. Separate look alike SKUs, post the packaging matrix, and print labels last.
How can a DC reduce parcel costs
Right size packaging and rate shop every label. Blend national and regional carriers.
Can one pool serve DTC, retail, and marketplaces
Yes. Keep one inventory pool and route by promise and cost. See 3PL fulfillment.