Transshipment concept

The transshipment concept or transfer point system is an approach mainly used by trading companies to bundle flows of goods. Here, the consignments of goods from a large number of suppliers are first delivered to transit terminals (goods distribution centers) in order to be broken down into individual customer commissions (e.g. branch-related) and then transported in a bundled recipient-related manner.
This drastically reduces the number of connections between delivery and receiving points. If, for example, 10000 connections are required to maintain the relationship between 100 delivery and 100 receiving points through direct links, only 200 connections are required for indirect linking via the transshipment warehouse bundling, namely 100 between the delivery points and the transshipment warehouse and 100 between the transshipment warehouse and the receiving points .

For the supplier there is the advantage of the large combined transport volume to one recipient. For the customers (e.g. branches) there is the advantage of one-time delivery, which leads to handling advantages, especially when the unloading possibilities are limited. For the freight forwarder, there is the advantage of optimal route utilization in the distribution.

Even companies that in the past carried out their fine distribution over short distances via delivery warehouses can use the transshipment concept to implement a 24-hour service without inventory in the area. With a high daily order volume and the resulting bundling, the transport cost advantage that the distribution warehouse normally has compared to direct delivery is retained.

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