There is a myriad of factors that differentiate a warehouse from a distribution center. The flow velocity of the two storage areas is one such factor. Let’s dig deeper into the technical aspects that influence the flow velocity of distribution centers and warehouse storage.
Warehouses are large spaces specifically designed to store goods for elongated periods. Simply put, warehouses are made to fulfill storage needs. This is why they are equipped with the technology that assists them in this function. These include sorting, restocking, and transporting inventory to the seller.
A distribution center manages a diverse catalog of services. Besides storing goods, they are used for order fulfillment, transporting, and packaging, among other functions. They also ship goods to end consumers and for restocking warehouses.
It is this difference between the two that determines their flow velocity. Flow velocity refers to the amount of time a product stays at a particular location. For warehouses, there is no standard time frame for storage. Goods stay in a warehouse until market demand for them arises and they need to be shipped off.
Since distribution centers are basically residing points for products until they are transported to their final destination. Hence, the time frame that a single unit stays in a distribution center is relatively shorter. Thus, it can be concluded from the evidence stated above that the flow velocity of a distribution center is quicker than that of a warehouse.