// ROBOTICS AND SMART FACTORIES TERM

Direct Shipment

Direct shipment is when goods are sent directly from the manufacturer or supplier to the customer, bypassing intermediate warehouses or distribution centers.

TECHNICAL DEFINITION

Direct shipment, a logistics strategy, involves transporting goods directly from the origin (manufacturer/supplier) to the final destination (customer), eliminating intermediate storage points like distribution centers to reduce lead times and costs.

BACKGROUND

Drop shipping is a form of retail business in which the seller accepts customer orders without keeping stock on hand. Instead, the seller transfers the orders and their shipment details either to the manufacturer, a wholesaler, another retailer, or a fulfillment house, which then ships the goods directly to the customer.

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SYNONYMS & ALIASES

  • Direct delivery
  • point-to-point shipping
  • factory-to-consumer
  • supplier-to-customer

USAGE NOTE

Direct shipments can reduce transit times and handling costs but may require more complex coordination.

DEVELOPERS

Organizations developing technology related to Direct Shipment.

  • Shopify

    Develops a comprehensive commerce platform that enables manufacturers to build direct-to-consumer (DTC) channels. Its integrated fulfillment network and order management system provide the technology backbone for managing inventory and executing direct shipments to end customers.

  • Zebra Technologies

    Provides hardware and software solutions, including rugged mobile computers, RFID technology, and warehouse automation software, that enable real-time tracking and management of inventory within a manufacturing facility for efficient direct-to-consumer order fulfillment.

  • SAP

    Offers enterprise software, such as SAP Extended Warehouse Management (EWM) and S/4HANA, which allows large manufacturers to manage factory-floor logistics and orchestrate complex direct shipment workflows from the point of production to the final customer.

  • Manhattan Associates

    Creates supply chain and omnichannel commerce software, including advanced Warehouse Management (WMS) and Order Management (OMS) systems. This technology helps manufacturers unify inventory and execute complex fulfillment strategies like shipping directly from the factory.

  • Geek+

    A global leader in robotics and smart logistics, providing Autonomous Mobile Robots (AMRs) for goods-to-person picking and sorting. This technology automates the process of preparing individual customer orders for direct shipment within a manufacturing or warehouse environment.

  • Körber Supply Chain

    Delivers a suite of integrated supply chain technologies, including warehouse management systems, voice-directed work, and robotics, to optimize fulfillment operations. Their solutions enable manufacturers to adapt their facilities for efficient direct shipment capabilities.

  • ShipStation

    Develops a leading web-based, multi-carrier shipping software that integrates with e-commerce platforms and ERP systems. It automates the final stage of direct shipment by streamlining order processing, label creation, and customer communication.

  • Infor

    Provides cloud-based enterprise software, including Infor CloudSuite WMS, which helps companies manage warehouse and fulfillment operations with enhanced visibility and control over inventory, labor, and logistics, all of which are critical for a direct shipment model.

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