The term Ship to Line describes a concept to increase capacity in the Supply Chain, except that the product value creation processes located on the customer side fall away.
Brief description
Ship to Line is a method for reducing activities that do not lead to the creation of production value between suppliers and customers, and works by dropping activities such as receiving goods, inspection at the receiving end and intermediate warehousing at the company. The supplier puts together the shipment, inspects and delivers the goods directly to the point of consumption without triggering logistics at the recipient.
Goals
With Ship to Line trying to :
- Significantly reduce storage resources,
- Reduce re-supply times,
- Reduce quality errors,
- Improve process transparency,
- simplify process flows,
- Reduce the need for storage space and
- get cost savings.
Opportunities
Savings - through this concept, high cost-saving potentials can be achieved, to which resource savings generally contribute
Simplifications - Ship to Line makes it possible to simplify customers' internal workflows, as time-consuming processes in the acquisition and inspection of goods are dropped.
Risks
Quality problems - if parts with defects are delivered, these deficiencies go unnoticed until they are used, since no inspection of the stored goods takes place
Dependency - The removal of the company's existing in-house warehouse increases reliance on the capabilities of an external supplier and its logistics processes.
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