Warehouse Portfolio Of Warehousing Services

Similar to warehouse categorization, when manufacturing sites are geographically fragmented, combining long-distance transportation can potentially reduce freight costs and warehousing needs. Under typical combined transportation conditions, full truckloads of products are shipped from the manufacturing plant to wholesalers, with each large shipment enjoying the lowest possible transportation rates. Once the products arrive at the combined warehouse, after unloading from the manufacturing plant, transportation combinations of each product can be selected according to each customer's requirements or market demand. Transshipment through combined transportation often enjoys economic support from special transportation rates, i.e., various transshipment incentives.

Under the combined warehousing concept, inbound products can also be combined with products regularly stored in the warehouse. The net effect of a warehouse providing transshipment combination services is a reduction in the overall product storage volume in the logistics system. Combination is categorized as a service benefit because inventory can be stored according to precise customer classifications.