Market-Oriented Distribution Center

Summary of Market-Oriented Distribution Center

A product distribution center located close to the point of consumption rather than the point of manufacture. For example, an American manufacturer of a product sold in Europe might supply European customers from a (market-oriented) distribution center in Rotterdam, rather than directly from the U.S. warehouse. Such an arrangement would permit a faster response to customer orders, and might permit reduced freight charges arising from large-volume shipments to stock the warehouse, as compared with a large number of small orders sent directly to customers.

(Main Author: William J. Miller)