Manufacturer storage with direct shipping and in transit merge Flashcards
What is in transit merge?
combines pieces of the order coming from different locations so that a customer gets a single delivery
inventory
ability to aggregate inventories and postpone customization is an advantage. benefit low demand products
transportation
compared to dropshipping, in transit merging decreases transportation costs due to aggregation of the final shipment
Facility costs
are higher for the party performing the merging because of merge capability required
Receiving costs at the customer are lower because of a single delivery received. Overall facility costs are somewhat higher than with dropshipping
information
a sophisticated information infrastructure is important to allow in transit merge. Higher than the one of drop shipping
Response time
may be marginally higher due to the need to perform merge
Product availability and variety and time to market
similar to the one of dropshipping
Customer service
Customer only recieves one delivery so it is slightly better than the one of dropshipping
Order visibility
Similar to drop shipping
Returnability
Similar to drop shipping
