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Package update using YUM

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http://www.linuxquestions.org – I have a Cent OS 6.4 server which will go online and update packages from mirrorlist.centos.org. Now i want to update packages from this server to other servers. Since rpms are not there in this server, i couldn't update to other servers in the network using yum update command.Do I need to create a local repository in this server(with the default rpm packages available in DVD) and download new packages using the option --downloadonly to the repository directory and update the metadata repository using yum makecache command, then install/update packages in other servers. What am trying to achie (HowTos)