Direct shipping from the manufacturer to the customer, bypassing distribution centers or warehouses, reduces inventory obsolescence. This is because products spend less time in storage and are delivered more quickly to customers, minimizing the risk of inventory becoming outdated or unsellable. Direct shipping can also improve inventory velocity, as products are moved directly to their end destination without intermediate storage, thus reducing the time they spend in the supply chain.
[References:, "The Handbook of Logistics and Distribution Management" by Alan Rushton, Phil Croucher, and Peter Baker, "Supply Chain Management: Strategy, Planning, and Operation" by Sunil Chopra and Peter Meindl, ]
Submit