Why do you think central distribution can be so unprofitable?

Central distribution can be unprofitable due to high operational costs, including warehousing, transportation, and labor expenses, which can eat into profit margins. Additionally, inefficiencies in inventory management or delays in supply chain processes can lead to excess stock or stockouts, further impacting profitability. Fluctuating demand and the inability to adapt quickly to market changes can also exacerbate these issues, making it challenging to maintain a sustainable profit.