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I’ve been in a lot of distribution centers lately. My work is nearly exclusively with distributors and manufacturers, so it’s part of the job. A part of the job I love.

And I’ve noticed a pattern.

The companies that are thriving treat their DC like the heart of the business. The companies that are struggling treat it like an afterthought.

Today I want to talk about why that matters, and what the difference looks like in practice.

The question most leaders don’t ask:

Your sales team gets the kickoff. Your branch managers get the strategy update. Your Distribution Center gets… what?

For too many companies, the honest answer is: not much.

That’s the gap I get hired to close. The leaders I work with who get it right already know their Distribution Center is the heart of the business. They call me to help tighten a few things, so what they believe shows up in what their people feel.

Here’s where they focus, and where you can start.

1. Show up.

The single biggest difference between a DC team that feels valued and one that doesn’t usually isn’t pay or programs. It’s presence.

Walk the floor. Know names. Ask what’s working and what’s not, then actually do something with the answers. Your DC team knows the leaders who show up and the ones who don’t. They’re paying attention constantly. They notice who came by when the new equipment arrived. They notice who didn’t come by when someone got injured.

Be the leader who shows up.

2. Focus on career development.

In a lot of companies, the DC is the highest-turnover department and the one with the least career development investment. The math doesn’t work, and the people in those roles know it.

DC jobs should have a real career path, real pay, and real growth. If your top performers can’t see a future past the loading dock, they may find one somewhere else. The companies that retain their best DC talent treat those roles as a starting point, not a stopping point.

3. Include them in the conversation.

Strategy information. All-hands meetings. Customer wins. Company news. If it goes to branch managers, it goes to the DC.

But include them on their terms. If your team in the DC doesn’t read email, sending a 600-word strategy memo isn’t communication. It’s a checkbox. Print it. Read it aloud at the start of a shift. Put it on the break room wall. Get it to the floor in a way that respects where they actually work.

They are not the people you talk about. They are the people you talk with.

4. Invest in their tools and their safety like you mean it.

New software for sales? Great. New scanners, lift equipment, and ergonomic upgrades for the DC? Same priority.

Watch what gets prioritized during budget season. If sales and office teams get the new tech and the DC keeps waiting, your team is reading that signal correctly.

The same is true for safety. When someone on the floor flags a hazard, what happens next is your safety culture. Not the posters. Not the binders. What you fix, and how fast.

5. Recognize them as the customer experience.

Because they are.

The branch ships the order. The DC made it possible. When the customer gets the right thing, on time, in good condition — that’s your DC team. The “customer experience” doesn’t start at the branch. It starts the second your DC team begins picking and packing.

Tell them. Tell your customers. Tell everyone. And don’t save recognition for the annual kickoff. Make it a habit!

What it looked like at The Granite Group

When I was CPO of The Granite Group, we called our DC the heart of the company. One DC, now 80 branches, six states.

We meant it, and the team there knew we meant it.

That meant including the DC team in every all-hands. It meant senior leaders walking the floor regularly. Not for a tour, but to be there. It meant investing in technology and ergonomics with the same energy we put into branch tools and sales platforms. It meant career paths that started in the DC and moved into branch leadership, operations, even corporate roles.

It was how we ran the company.

And it showed up in the things you’d hope: lower turnover, stronger engagement, customers who got the right product on time. Companies that treat their DC as the heart of the business get heart-of-the-business results.

Companies that treat it as an afterthought get afterthought results.

One more thing

Your DC is your people. Treat them like the center of your company. Because they are.

Tracie Sponenberg

Tracie Sponenberg spent 25 years leading HR inside the companies that make and move things, including nine years as Chief People Officer at The Granite Group, a wholesale distributor that grew to nearly 1,000 people across 80+ locations. She now works with the CEOs of midsized manufacturers and distributors as a fractional Chief People Officer, keynote speaker, and author. She's not a speaker who used to do the work. She's still in it.

This was adapted from my newsletter,

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