Direct shipment is a method of delivering goods from the supplier of the product owner to the customer directly. In most of the cases, the customer orders the goods from the product owner. This delivery scheme reduces transportation and storage costs, but require additional planning and administration^[1].

Direct shipment is a common practice in industries that rely on outsourced manufacturing to a big extent, like high-tech, apparel and footware as well as durables industries.

[edit] References

1. ^ Direct Shipment Best Practice of the Federal Aviation Administration (FAA) http://www.faa.gov/aircraft/air_cert/production_approvals/mfg_best_practice/media/directship.pdf