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Direct delivery: definition & important aspects for buyers
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Direct delivery in a nutshell:
Direct delivery describes the delivery of goods directly from the manufacturer or supplier to the end customer, without intermediate storage in the company's own warehouse. For the purchasing department, this means reduced storage costs and shorter delivery times, while at the same time minimizing handling and the associated risks.
Example: An automotive supplier agrees with its steel supplier on the daily direct delivery of 2.5 tons of special steel to three production sites, which reduces warehousing costs by EUR 45,000 per year.
Contents
Introduction to direct delivery
What is direct delivery?
Direct delivery is a logistics and procurement concept in which goods are delivered directly from the supplier to the end customer or to the place where they are needed, without intermediate storage or transshipment stations. This model enables faster and more efficient delivery as it shortens the transportation route and reduces the need for warehousing within the company. Direct delivery is often used to shorten delivery times, save costs and streamline the supply chain.
Core elements of direct delivery
Significance for purchasing
Direct delivery offers numerous advantages for purchasing. It reduces costs through lower storage and transportation costs and increases the efficiency of the supply chain. Buyers can improve responsiveness to customer requirements and shorten delivery times through direct delivery. It also promotes closer cooperation with suppliers, which leads to better business relationships and negotiating leeway.
Whitepaper: Direct delivery - optimizing the supply chain through efficient delivery routes
Implementation of direct delivery
Direct delivery is implemented by companies working closely with their suppliers to deliver goods directly to the point of need. This requires synchronizing delivery times with consumption and adapting logistics processes to eliminate intermediate storage and streamline the supply chain.
Case study: Direct delivery in the construction industry
A construction company has discovered that storing building materials on site leads to high costs and space problems. By introducing direct delivery, it agrees with its suppliers to deliver materials such as concrete and steel directly to the construction site exactly when they are needed. The supplier receives detailed construction plans and schedules in order to coordinate the delivery precisely. This approach reduces storage costs, minimizes material waste and increases efficiency on the construction site.
Evaluation and strategic findings on direct supply
✓ Critical success factors
→ Precise demand planning: exact prediction of quantities and times for optimal delivery coordination
→ Digital integration: real-time data exchange between supplier and customer for synchronized processes
→ Supplier qualification: Careful selection and development of efficient partners with just-in-time capabilities
⚠ Challenges and limitations
→ Process dependency: Increased susceptibility to delivery delays or quality problems
→ Communication effort: Intensive need for coordination between all parties involved
→ Loss of flexibility: limited ability to react to short-term changes in demand
Future trends and developments:
"Direct delivery is becoming the standard for efficient supply chains thanks to digital technologies."
→ AI-supported demand forecasts for more precise delivery planning
→ Blockchain-based supply chain transparency
→ Autonomous transport solutions for flexible delivery
→ IoT-controlled real-time monitoring of deliveries
◆ Strategic implications
→ Cost optimization: Significant reduction in storage and handling costs
→ Risk management: developing robust backup strategies for critical deliveries
→ Partnership models: building long-term, technology-based supplier relationships
Conclusion on direct delivery
Direct delivery is a forward-looking logistics concept that enables significant efficiency gains and cost savings by eliminating intermediate storage. Its success depends largely on precise planning, digital integration and reliable supplier relationships. Despite certain challenges such as increased coordination effort and process dependencies, the strategic advantages clearly outweigh the disadvantages. With advancing digitalization and AI-supported solutions, direct supply will continue to gain in importance.
