Distribution

"Production and consumption cycles rarely match, so most companies must store their goods while they wait to be sold. For example, Snapper, Toro, and other lawn mower manufacturers run their factories all year long and store up products for the heavy spring and summer buying seasons. The storage function overcomes differences in needed quantities and timing, ensuring that products are available when customers are ready to buy them." (Marketing: An Introduction, Armstrong & Kotler, Ch. 10, Pg. 332)

The Veggie Van will keep all it's supplies in the van when it starts out, but once our food truck becomes very popular and gains many fans and loyal customers, we will need to get a distribution center.

Distribution center

A large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible. (Marketing: An Introduction, Armstrong & Kotler, Ch. 10, Pg. 332)

Our distribution center will be a small apartment where we keep freezer in which we keep our soy patties and other things that need to be kept frozen or cool. Other than being a distribution center, the small apartment will also be our head quarters where we can have business meetings. 

A company must decide on how many and what types of warehouses it needs and where they will be located. The company might use either storage warehouses or distribution centers. Storage warehouses store goods for moderate to long periods. Distribution centers are designed to move goods rather than just store them. They are large and highly automated warehouses designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible. (Marketing: An Introduction, Armstrong & Kotler, Ch. 10, Pg. 332)