Distribution Center as a Source of Business Efficiency - An Empirical Insight

Distribution centers as an integrative element of the logistics and distribution channel are introduced in nineteen-seventies. Their main characteristic is an intensive application of a contemporary storage and product-manipulation technology and information-communication technology for inventory and material-flow management. In scientific and professional literature and international study cases, numerous success stories of distribution centers in various industries are given together with explanation of their benefits. However, there is a lack of examples from South-Eastern Europe, and for Croatia there almost isn't any scientific empirical evidence of the distribution centers impact on business efficiency. This paper gives an insight into the theory on distribution centers and discusses two companies in Croatia. In given cases, the premise on positive influence of distribution centers on overall business efficiency is tested. Also, in the paper the segments, in which distribution centers influence overall business at high level, are stressed out.