i) Consolidation: Material from a number of manufacturing plants destined to a particular customer on a single shipment are consolidated and received by the consolidating warehouse which results in reduced transportation cost. The advantage is that it combines the flow of logistics from several small shipments to a specific market area. Several firms may also join together and use this consolidation service, which will benefit each shipper individually.
ii) Bulk Breaking: Various combined customer orders are received from a manufacturer and shipped to individual customers. A break bulk warehouse sorts or splits individual orders and delivers them locally.
iii) Cross Docking: This facility is similar to bulk breaking but involves multiple manufacturers. Truckloads of products arrive from multiple manufacturers, which are sorted customer wise. Then they are loaded into the truck destined for the appropriate customers. This system is widely used by retailers.
iv) Postponement: A warehouse with facilities for light manufacturing activities like packaging and labeling can enable postponement of final production until the exact demand is known. The benefit here is a reduced level of risk and lower inventory as the final labeling and processing activity is done only on knowledge of the actual demand and thus the basic product is used for a variety of labeling and packing configuration.
lydiajane74 answered the question on May 4, 2018 at 19:06
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