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How a logistics distribution hub works
Do you already know what tasks are performed in these hubs and their advantages? If not, you have just arrived in the right place to find out.
Distribution hubs (also known as CEDI or CD) are spaces specifically for receiving, storing, and shipping goods. Their role is therefore to serve as an intermediate link between wholesalers and retailers with a view to improving logistics flows.
These platforms have gained enormous relevance in recent times due to the growing popularity of e-Commerce. Furthermore, technological advances and strategic location are commonplace with them, which guarantees the maximum streamlining of logistics processes.
What functions are carried out in a distribution hub?
Distribution hubs act as nerve centres from which all activities integrated into the supply chain are deployed. Consequently, its facilities record a high turnover of goods in dynamic processes that begin with their reception and end with their dispatch.
Receipt of the merchandise
The first stage in the activity of a logistics distribution hub is to receive the goods, in order to classify them and ready them for storage.
This is a crucial phase, as its proper undertaking will condition the smooth runnig of the entire supply chain. As a rule, such reception is operated at the loading docks.
Storage and Stock Management
Once the goods have been received, they are taken from the loading docks to the area where they are to be stored (inbound processes). We must take into account the fact that the CEDIs include a specific space for each type of product to adapt the storage to its special characteristics.
A quality distribution hub will have on hand a flexible and efficient storage system. Thus, it is common for this to be equipped with automations or be based on FIFO stock batches. Similarly, it is essential to synchronise warehouse inputs and outputs via thorough stock management.
At this point, there is no doubt that technology is emerging as a key ally for efficient management of goods’ storage. An item that Logisfashion takes into account to ensure the visibility of all operations.
Picking y packing
As we receive orders, the next step is to ready the goods and orders for shipment to the stores or to the consumers’ homes. Certain cross docking operations can also be carried out for its seamless distribution to the destination.
Tailor-made orders, not only in terms of picking but also of packs of items, is a growing trend for almost all sectors (namely, fashion and lifestyle, foodstuffs, para-pharmacy, etc.). Therefore, the logistics distribution hub including this service is key for brands.
Distribution of goods
With the merchandise already prepared and allocated to the corresponding order, the distribution hub then moves to dispatch it. To perform this action, it transports the unit to the corresponding bays using forklifts or automated sorters.
In an increasingly globalised world, one feature that sets CEDIs aside is their ability to distribute goods beyond its own borders. This leadership is defined by services such as multimodal international transport and customs formalities management.
Advantages of using a logistics distribution hub
The main advantages of the distribution center can be summed up in one word: efficiency. Thus, this streamlining of resources is deemed as valuable as the time and control of goods and their flows that explains the success of this type of logistics space.
Swifter deliveries
One of the greatest advantages of distribution hubs lies in their unrivalled location. Remember that these spaces are usually located in the vicinity of large cities and logistical or industrial areas. Thanks to this, the time between receipt of the order and delivery of the goods is considerably reduced.
With the unstoppable digitisation process we have experienced, consumers have become incredibly demanding regarding delivery times. That said, dealing with that widespread impatience is vastly complex when you cannot turn to the backing of a good distribution hub.
More profitable logistics
Distribution hubs are an all-in-one in terms of logistics tasks.
From the moment they receive the goods, their managers handle the entire process until it is completed with its dispatch. This centralization reduces the storage time and transportation distances, which brings with it a notable streamlining of costs.
Outsourcing logistics operations with operators that offer strategically located logistics distribution centers with all services brings significant benefits to any business. On the one hand, we will be able to increase our profit margin. Conversely, we will be able to offer tighter and more competitive prices to our customers.
Tailor-made service
Flexibility is a highly important factor when choosing a logistics operator and a logistics distribution hub. Certainly, those who meet this quality are characterised by adapting their services to each company’s needs.
A good example of this personalisation would be the specific services for the fashion, lifestyle and retail sector Logisfashion offers (embroidery, embroidery, alarming/de-alarming, etc.).
Furthermore, through e-commerce, this fulfillment logistics is duly adapted to each customer’s needs: from small independent shops to large stores.
Greater logistics efficiency
If anything makes it worthwhile engaging with a solid logistics partner offering a high standard logistics distribution hub, it is due to its suitability to harness the supply chain. Indeed, their experience, specialisation and economies of scale allow them to gain in terms reliability, as it reduces errors while meeting deadlines.
The advantages of this increased logistics productivity are as obvious as they are desirable. On the one hand, attaining customer satisfaction will be made easier. Conversely, our company’s competitiveness is clearly bolstered.
Logisfashion, your international logistics partner
At Logisfashion, we have given an overhaul to 3PL and 4PL logistics based on end-to-end infrastructures, technology and services. To date, we boast 28 distribution hub and more than 550,000 square metres of operating space.
Choose us to become your partner and start benefiting from the services we can provide you in our logistics distribution hub that offer everything you need to boost your business’s competitiveness.
