Benefits of Direct Shipping

Direct shipping means that the cargo will go right from the factory directly to the customer without first stopping at a warehouse or facility operated by the seller. Manufacturers and retailers are always looking for ways to streamline their processes while saving money. They look for ways to save in their supply chains including both changes in logistics and changes in storage that can have cost savings. This is why choosing to direct ship can make a huge difference in supply chain savings as well as shorter transit times for their customers.

It sounds like a win for both sides but there are also drawbacks to shipping direct. When you ship direct, you are basing your transaction on samples that have been sent by the factory. While these samples are supposed to be the correct item and built to the agreed upon specifications, the seller does not get to inspect the item before shipping to their customer. This can be especially stressful when shipping internationally. The longer transit times added to the production times can add months to the final delivery date should there be a problem. It is for this reason that many suppliers will not begin a direct ship program until they have already had regular shipments with their customer.

Shipping direct can be a great asset especially to a lean manufacturer. The cost savings alone is worth the time to set up the shipments. Without holding inventory and without the added domestic logistics costs, a company will be able to ship larger quantities to super stores and still keep the same level of service. While it may seem a lazy way to avoid shipping costs, the benefits to direct shipping can be enormous for both sides for costs as well as speed to market.