Which term describes a facility that stores goods prior to distribution to customers?

• A. Nearshoring
• B. Co-sourcing
• C. Distribution Center
• D. ERP

Answer: (C)

A distribution center is a storage and handling hub in the supply chain where goods from suppliers are received, stored, and then picked, packed, and shipped out to customers or retailers. Its primary purpose is to manage inventory and move products efficiently to fulfill orders, acting as the staging point between production and final delivery. This distinguishes it from other terms: nearshoring refers to moving production closer to the market, not to a storage facility; co-sourcing is about sharing some sourcing or service responsibilities with a partner; ERP is software that integrates business processes, not a physical building. So the term that best describes a facility that stores goods prior to distribution to customers is a distribution center.