Freight glossaryWarehousingFreight
Distribution Center (DC)
Definition
A distribution center (DC) is a warehouse that holds inventory and ships it out to stores or customers as orders come in.
What it means
The FHWA freight glossary defines it as "the warehouse facility which holds inventory from manufacturing pending distribution to the appropriate stores."[1] A DC receives, stores, picks and ships. A cross-dock, by contrast, is designed to avoid holding inventory; many DCs run cross-dock lanes for part of their freight.
Retail DCs usually receive by appointment and scan each pallet's SSCC against an advance ship notice. A late truck, an unreadable label or a pallet built outside the retailer's rules can get a delivery refused, which is where freight rejected by the receiver picks up.
Related
Related terms
- Cross-DockingCross-docking is moving freight from inbound trucks or containers straight onto outbound trucks at a dock...Glossary
- ConsigneeThe consignee is the party a shipment is sent to, usually the buyer; the receiver is the facility where it is...Glossary
- Advance Ship NoticeAn advance ship notice (ASN) is the electronic message a shipper sends a receiver before delivery, describing...Glossary
- SSCCAn SSCC (Serial Shipping Container Code) is an 18-digit number that identifies one specific logistic unit...Glossary
- Freight ConsolidationFreight consolidation is combining several smaller shipments into one larger load, such as several LTL...Glossary
Related questions
- Live Unload vs. Drop Trailer: What Is the Difference?In a live unload the driver and truck wait at the dock while the trailer is unloaded. In a drop, the driver...Answer
- What Are the Main Types of Cross-Docking?Cross-docking is usually classified by when each unit's destination is decided: in pre-distribution...Answer
Related freight problems
Related guides
Sources
- Federal Highway Administration, Office of Freight Management and Operations, “Freight Glossary,” Government glossary. Accessed September 30, 2026.
General operational information, not legal, customs or regulatory advice. Rules and rates change; confirm current requirements with the agency, carrier or contract that governs your shipment.