Distribution
DC and store distribution.
What really happens at this stage
Distribution is the stage where goods that have arrived at the buyer's country move from a central distribution centre, or DC, out to individual stores or fulfilment points in the quantities and timing each location needs. The DC receives bulk shipments, breaks them down, and either cross-docks cartons straight to store-bound transport or holds stock briefly for allocation decisions based on store size, sales history, and regional demand. Store distribution planning decides how many units of each size and colour go to which store, a decision usually driven by a merchandising or allocation team using historical sell-through data rather than an even split across all locations.
Replenishment distribution differs from the initial store set because it responds to actual sales, pulling stock from the DC to top up sizes and colours that are selling faster than others, which requires the DC to hold a buffer of fast-moving sizes rather than shipping everything out in the first wave. Getting distribution timing wrong, either too early or too late relative to a marketing launch date or a seasonal selling window, can mean stores are either overstocked with unsold goods or missing key sizes during peak demand. Accurate DC inventory data and a reliable transport network between DC and store are what make responsive replenishment possible rather than aspirational.
How it is done
- 1Receive at the distribution centre
Check inbound shipment cartons against the advance shipping notice and update the DC inventory system on receipt.
- 2Plan store allocation
Allocate units by store based on historical sell-through, store size, and regional demand rather than an equal split across locations.
- 3Break down and prepare for onward transport
Sort cartons or repack into store-specific consignments, labelling each with the destination store code.
- 4Schedule onward transport
Book store delivery routes and timing to align with the planned launch date or the store's restocking day.
- 5Monitor sell-through
Track daily or weekly point-of-sale data by store to identify which sizes or colours are moving fastest.
- 6Trigger replenishment
Pull buffer stock from the DC to top up fast-selling stores, prioritising locations closest to running out of key sizes.
Key metrics (indicative targets)
| Metric | Working target | Why it matters |
|---|---|---|
| DC to store lead time | Within 24 to 72 hours depending on network (indicative) | Long lead times delay store readiness for a launch or replenishment need. |
| Initial allocation accuracy | Above 85 percent of stores receiving sizes matching local demand pattern (indicative) | Poor allocation causes markdowns in overstocked stores and lost sales in understocked ones. |
| Replenishment fill rate | Above 90 percent of replenishment requests fulfilled from DC stock (indicative) | Low fill rate means stores run out of fast-selling sizes during peak demand. |
| DC dwell time before onward dispatch | Under 48 hours for cross-docked stock (indicative) | Extended dwell time delays store readiness and ties up DC capacity. |
| Distribution accuracy | Above 99 percent of store consignments matching the allocation plan (indicative) | Mismatched consignments require costly store-level corrections and confuse store staff. |
Targets are indicative working ranges, not standard or legal limits.
Control points to check and sign off
- Inbound shipment checked against the advance shipping notice before DC inventory is updated.
- Store allocation plan reviewed against sell-through history before goods leave the DC.
- Store-specific consignments labelled and verified against the allocation plan before dispatch.
- DC buffer stock levels reviewed regularly to support replenishment without overholding inventory.
- Store delivery timing coordinated against marketing launch dates or restocking schedules.
Common pitfalls and their consequences
- Allocating stock evenly across all stores regardless of local demand, leaving some stores overstocked and others chronically short.
- Holding excessive buffer stock at the DC instead of pushing it to stores, missing the peak selling window entirely.
- Ignoring point-of-sale data when planning replenishment, so the DC restocks slow-moving items while fast sellers go out of stock.
- Mislabelling store-specific consignments, causing goods intended for one store to arrive at another.
- Scheduling onward transport without accounting for the marketing launch date, so garments arrive at stores after the promotional window has passed.
Main activities
- Warehousing, staging and cross-docking
- Ocean, air and multimodal shipment
- DC and store distribution
Quality risks
- Stock imbalance
Sustainability risks
- Excess miles
AI opportunities
- Demand-driven allocation
Official sources
Learn the skills used at this stage
Free GarmentEd lessons with worked calculations, checklists and practice questions for the work described above.
Also relevant: Returns and Reverse Logistics.