A software distribution centre is where large quantities of physical goods are stored in warehouses so they can be sent to retail outlets.
Software distribution centres are not the same as cyberware distribution centres, which store software files for downloading off the internet.
A software business may need to set up a software distribution centre in order to be able to distribute their products efficiently.
Software businesses often purchase or rent warehouse space, and then work with either an internal team or external outside
contractors for packaging, labeling and packing orders before they’re sent out. The process is also known as centralized order management (COM).
For software distribution centres, the main considerations include the amount of capacity needed, location,
storage and transportation cost. Software businesses can source these items on their own,
but ultimately they must decide what type of hardware equipment they will be using.
Depending on the products being distributed by the software company, there are different ways to package them up for delivery.
The types include shrink wrapped boxed products (SBR), single edge box (SEB), double edge box (DEB) and palletized product (PP).
Boxes measures lengthways along the sides and may be of various depths due to depth requirements.
Sometimes, software developers will need to purchase special software files such as executable files and program file downloads.
Software distribution centres typically utilize either a two-stage or three-stage process.
In the two stage process, orders are first composed by an external team and then once they’re packed up and ready to go
they’re sent to the distribution centre for shipping out. A three-stage process involves an initial team that assembles orders and
then works with a secondary team that performs quality control before finally it’s shipped out.
The advantage of the 3 stage process is that it reduces errors but it also requires more manpower.
Both processes can be done in house or externally using outside contractors, depending on needs.
Some software distribution centres will have their own fleet of delivery trucks for shipping out the orders,
but sometimes the distribution center will utilize their own warehousing teams for this work, or they may contract with an external team.
Part of the consideration for this is to ensure that drivers are well trained to handle different
types of equipment and that they’re able to pack up the orders safely.
The software distribution centre may also need to set up a customer service centre which allows
them to respond promptly and efficiently when customers have pre-sales queries.
This center gives them a place to store customer information and can also provide customers with logs for their orders,
as well as deliver goods directly to customers’ premises. Software distribution centers must take into consideration their own capacity
(how much staff they need and how much space is required), as well as the number of orders they deal with each month.
There are different ways for software distribution centres to ensure that orders can be shipped out promptly.
One way is for the software company to provide its customers with a standard shipping weight
(for instance, all orders may be packaged and labeled in such a way that they weigh 8 pounds).
Customers will only pay the shipping fee once the delivery truck weighs the packages at its destination.
A disadvantage of this method is that customers may not receive their packages in a timely manner
if they’re shipped in larger than the standard weight.
Another method is to provide customers with smaller boxes or pallets to ensure that the product will fit inside,
but then the software company bears the cost of additional shipping.
The disadvantage here is that it may be more expensive for customers to have these products delivered.
There are other methods which involve packaging up your products by themselves,
sometimes creating special boxes or creating pallets for easier transportation.
This involves an additional cost, so many companies opt for this method so
they don’t have to purchase their own equipment instead of using their own staff members who are already busy.
In order to cut down on storage space, some software companies will opt for cross docking space.
In this type of arrangement, a third-party company will deliver the products directly to customers.
The disadvantage of this method is that it requires extra trust in another logistics company and their ability to handle your product.
On the other hand, a logistics company that has storage space can also provide software developers with
warehousing services at a discounted rate if they have their own distribution centre. mtu software distribution
Some companies may choose to move goods from storage once they notice an increase in demand from customers,
while others may store goods up until their shelf life expires before selling them off at a discount price.