Shipping Direct

Throughout the shipping industry there are different ways that people set up their shipments to maximize international shipping costs. Shipping direct from the factory abroad instead of through a warehouse is one of those ways. Shipping direct has always been beneficial especially for companies who are buying large quantities of goods from one vendor. Shipping direct means that the shipment will leave the factory and follow one path directly to the customer’s warehouse door, but the vendor will manage the process and a freight forwarder will handle the goods.

In direct shipments, the buyer will place full container orders for the materials and the vendor is the middle man. When not buying as a direct ship, the vendor would receive the goods into their own warehouse and then send the goods from their warehouse to the customer’s facility. In this case the buyer has nothing to do with the overseas shipping container that the product will come in on. The container will go directly to the vendor’s warehouse for redistribution. The purchase orders in this case are much smaller and freight shipping costs are not a part of the buying but rather included in the price of the goods.

Most shipments that customers receive will go through the normal supply chain of the vendor. While there are many benefits to shipping direct, it only works if the customer is buying large quantities that would come in from the same factory.