1. Topic 6 – Logistics and Supply Chain Management
A – Logistics and Value Chains
B – Distribution Facilities
C – Distribution Systems

2. B – Distribution Facilities
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3. Warehouses versus Distribution Centers
What are the differences between a warehouse and a distribution center?
Both are physically similar with docking areas and storage racks.
Time; inventory is stored in a DC for shorter periods of times than a warehouse (days or weeks).
A warehouse tends to be supply-driven while a DC is focusing on the demand.

4. Warehouses versus Distribution Centers
Warehouse (Storage)
Holding goods in inventory for an extended period of time and releasing them on demand.
Ownership of the cargo.
Usually a buffer related function.
Distribution center (Distribution)
Consolidating, deconsolidating, sorting a cargo load or changing the load unit.
Cargo usually owned by others.
Usually a throughput related function.

5. Types of Freight Facilities
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Storage
Distribution
Fabrication
Manufacturing
facilities
Heavy manufacturing
Light manufacturing
Intermodal Terminal
Terminals
facilities
Bulk or transload terminal
Bulk warehouse
Importance
Storage
facilities
Warehouse
High
Multitenant facility
Average
Low
Distribution center
Distribution
facilities
Cross-docking facility
Cold storage facility
Urban logistics depot
Parcel
facilities
E-fulfillment center
Sortation center

6. Container Terminal, Port of Gothenburg, Sweden

7. Coal Bulk Facility, Mobile, Alabama
Source: Port of Alabama Authority.

8. Bulk Warehouse (Corn)

9. Aluminum Parts Warehouse

10. Walmart Distribution Center

11. Cold Storage Facility

12. Grocery Chain Cold Storage Facility, Regina
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13. Large Scale Grocery Cold Chain Distribution Center
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Suppliers
Inbound
Ambient (20 °C)
‘Banana’ (10 °C)
Storage / Sorting
Chilled (2 °C)
Freeze (-10 °C)
Outbound
Customers

14. Subtropolis Distribution Center, Kansas City
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15. Amazon E-Fulfillment Center

16. Amazon Sortation Center

17. Extended Distribution Center System of JVC Belgium
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18. Palletization of “Floor Loaded” Shipments, Belgium

19. The Role of Distribution Centers and Warehouses
Distribution Center Only
Distribution Center and Warehouse
Deliveries
Deliveries
Producers’
warehouse
Distribution
center
Deliveries
Distribution
center
Deliveries
Deliveries
Production unit
Consignment
Delivery vehicle
Retail store
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20. Asynchronism and Distribution Centers
Production and Consumption
Supply Chains
Consumption DC
Production
Shipment Size
Market Areas DC DC
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21. Main Warehousing Operations
Cross-Docking
Put away
Order-picking
15%
55%
Receiving
Storage
Picking
Shipping
10%
Sortation
Packing

22. Cross-Docking Distribution Center
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Distribution Center
Before Cross-Docking
Suppliers
Suppliers
LTL
Receiving
Customers
Sorting
After Cross-Docking
Shipping
FTL
Cross-Docking DC
FTL
Customers

23. Optimal Location and Throughput by Number of Freight Distribution Centers
Source: Adapted from Chicago Consulting.
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24. Short Assignment: Distribution Facilities
Explain what are the main types of distribution facilities and the role they each play