Wednesday, September 19, 2012

What Exactly is Merge-In-Transit?


Merge-in-transit is a global logistics solution that allows businesses to take optimize their inventory management procedures and greatly reduce shipping costs. Many business owners are outsourcing these services to third party logistics providers in order to reduce costs and free up more time so they can focus on more important decisions. Here is your guide to how merge-in-transit can work for your business.

In general, this service allows you to oursource the management, coordination, and procurement of multiple components of raw materials for your production line. Components can be shipped from various manufacturers and warehouses to one place where they can be prepped to await order fulfillment. For instance, if you have separate manufacturers for your packaging and the various components your product, these can be brought together in a centrally-located place and stocked for fulfillment. 

To break it down further, this is the process in four steps:
1. Your customer places an order that requires multiple components.
2. Your various suppliers provide stock to your merge-in-transit fulfillment center who manages an constant inventory of product.
3. The various product components will be stored temporarily.
4. As the orders come in, warehousing experts pick the components, carefully pack them into one shipment, and send them to the ordering customer.

If your business is one that typically sells a high valume of various products, this is an incredibly valuable service that can allow you to free up valuable resources. Your company is provided with a global solution to coordinate customer orders regardless of the amount of components in each shipment. 

Depending on how much control you want to retain, or alternatively, how much freedom you want to gain, there are a variety of service available to be outsourced. A third party logistics provider can provide services as varied as order fulfillment, inventory management, returns, and even customer service and satisfaction.

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