A distinguishing feature of a highly functional system is its support for different business models in addition to standard shipping.
CROSS-DOCK
Cross-docking
Incoming goods are transferred directly to the dispatch vehicle without being taken to the warehouse. This eliminates inventory holding costs; however, the timing of incoming and outgoing flows must be perfectly matched.
DROP-SHIP
Direct shipment
The goods go directly from the supplier to the customer; they never pass through the company's warehouse. The flow of documents and costs needs to be separated from the physical flow.
CONSIGNMENT
Consignment stock
The goods are on the customer's premises, but ownership belongs to the sender. Sales occur as consumption takes place; inventory counting and reconciliation are separate processes.
DSD
Direct store pickup
Direct delivery from the vehicle to the store and on-site billing. The driver also acts as a sales representative.
MILK-RUN
Circular journey
Collection from multiple points or distribution to multiple points along a fixed route. Common in the automotive supply chain.
TRANSFER
Inter-warehouse shipment
Stock transfers between their own locations. Documentation and accounting rules differ from customer shipments.
PROJECT
Project shipment
Construction site and assembly shipments; partial deliveries, shipments according to assembly schedule, and on-site condition management.
E-commerce
Cargo and parcel shipments
Numerous single-item orders; shipping company integration, automated label generation, and shipment tracking number matching.
Why is this diversity important?
As a business grows, it can no longer be limited to a single delivery model. The same company can offer palletized delivery to its distributors, scheduled deliveries to chain supermarkets, project delivery to corporate clients, and cargo shipping to end consumers.
Managing each model in a separate system fragments inventory and cost visibility. The value of a highly functional system lies in its ability to run all these models on the same inventory and accounting system .