The concept of in-transit product merging-where, for example, two things are shipped from different locations and then married in transit so that they reach the customer as a single shipment-can be seen as a technique for reducing inventory if the need for the customer to simultaneously receive multiple SKUs is taken as a requirement. If the need for simultaneous receipt is a given, then the concept eliminates the need for inventorying the individual SKUs together. To some extent, merge-in-transit represents an extension of postponement beyond the distribution center walls.
Components are sourced from different manufacturing and/or warehousing locations. Components are received, temporarily stored awaiting order-completeness and consolidated in a Service Centre to be delivered as one complete order to the end customer. The solution combines components into one order while the goods are in transit.
The steps are as follows:
1. A customer requests the multi-component order.
2. Suppliers from all over the world send the components to a pre-designated Service Centre.
3. The components are temporarily stored in the Service Centre, and when all the components have arrived, they are merged into one shipment.
4. Lastly, the completed shipment is then sent to the customer who placed the order.
Often in business, companies have to use new methods in order to acquire goods, and the Merge-in-Transit has become commonplace in a market whose vendors are located in widely-separated and often disparate geographical locations. SIMMS Inventory Management software can help you with all of your manufacturing, ordering and assembly requirements. Visit www.simmssoftware.com or email firstname.lastname@example.org.