What is a freight distribution center?

A freight distribution center is a central hub in logistics where goods flows are efficiently bundled, transshipped, and redistributed. It serves as an interface between different modes of transport such as trucks, trains, or ships and enables optimized forwarding of goods to their destinations. The aim of a freight distribution center is to shorten transport routes, optimize supply chains, and ensure economical and environmentally friendly distribution.

Functions of a freight distribution center

A freight distribution center performs various logistical tasks, including:

• Goods bundling: Consolidating shipments from different origins for joint redistribution.
• Transshipment and forwarding: Transshipment of goods to different modes of transport to make onward transport efficient.
• Storage and order picking: Temporary storage and compilation of shipments according to individual customer requirements.
• Change of mode of transport: Use of multimodal transport options (e.g., transfer from truck to rail) to reduce transport costs and environmental impact.

Goods distribution centers are essential components of modern logistics networks. They make an important contribution to increasing efficiency in the logistics chain, reducing costs, and improving sustainability in transportation. Goods distribution centers are playing an increasingly important role, particularly in times of growing e-commerce and increasing demands for fast and flexible distribution.