Direct delivery

Definition:

Direct delivery is the process in which goods are delivered directly from the manufacturer or supplier to the end customer via an interim warehouse. This is also often referred to as “dropshipping.”

advantages:

• Savings on storage and logistics costs
• Shorter delivery time for the customer
• Flexibility in the product range by dispensing with your own stocks

Disadvantages:

• Dependence on delivery times and supplier reliability
• Less control over the packaging and shipping process
• Low impact on customer service and customer experience

Practical example:

‍A small e-commerce company sells accessories through an online shop without running a warehouse itself. The products are shipped directly from the supplier, which allows the company to flexibly expand its range without having to incur its own storage costs.