A split delivery is a logistics method where a larger quantity is ordered on a purchase order to secure a lower price, but delivery is divided into smaller quantities and spread out over several dates. This helps to control inventory investment and save storage space.
There are several benefits to using split delivery in logistics:
- For example, it can help reduce overall costs by ordering in larger quantities and taking advantage of economies of scale.
- Additionally, it can help to improve inventory management and control by delivering goods in smaller, more manageable batches.
- Finally, it can also help save on storage space by spreading out deliveries over time.
While split delivery offers many advantages, there are also some potential drawbacks to consider:
- For instance, if not managed properly, split delivery can lead to higher inventory carrying costs due to the need to store larger quantities of goods.
- Additionally, split delivery can also add complexity to the logistics process, which can lead to delays and errors.
Overall, split delivery is a powerful tool that can offer many benefits to businesses. When used correctly, it can help to improve efficiency, reduce costs, and improve inventory management. However, it is important to weigh the potential disadvantages before implementing this method in your own business.