Break-bulk warehouses play a critical role in reducing transportation costs by:
Receiving Large Shipments: Bulk shipments are received from manufacturers or suppliers. These large volumes typically attract lower transportation costs per unit due to economies of scale.
Breaking Down Shipments: The large shipments are then divided into smaller, more manageable quantities suitable for distribution to various locations or directly to customers.
Distribution: The smaller shipments are then transported to their final destinations. This method ensures that transportation costs are minimized as the bulk of the travel is done in larger, cost-effective shipments.
Efficiency: This process helps in consolidating shipments, optimizing load capacities, and reducing the overall number of trips required.
[References:, Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2013). Supply Chain Logistics Management. McGraw-Hill., Langley, C. J., Coyle, J. J., Gibson, B. J., Novack, R. A., & Bardi, E. J. (2008). Managing Supply Chains: A Logistics Approach. South-Western Cengage Learning., , ]
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