Buy more! Better price! A buyers dream and logistics nightmare, the unit price may be appealing but end- to-end cost and consumer demand need to be considered - why order 5000 beach balls when 500 will meet your forecast? Consolidation provides flexibility, manages costs and can improve lead-time.
Going back to shipping beach balls there are three options for international shipping:
- Ship a full container load direct from factory to destination warehouse (CY/CY), the container is less than half full…If the same factory produces beach towels, the two orders can be combined to ship at the same time and improve container utilization and lower freight cost per unit
- Ship less than container load (LCL/LCL), the factory delivers to the origin warehouse, usually loose loaded, it then gets packed with other customers stock, shipped to destination then devanned and delivered to you warehouse…
- Combine multiple orders from different shippers (LCL) into a single container (CFS/CY)
Moving product through an origin warehouse (CFS) creates wider opportunities within your supply chain.