Merge in transit

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Merge in transit is a situation in which goods from multiple sources (a company’s own factories, outside suppliers, etc.) for an order are sent to a distribution center, where they are consolidated for shipment. The traditional example cited for merge-in-transit is for personal computers, where the manufacturer needed to mix locally produced PC towers with monitors, keyboards, printers, and other accessories produced by other companies.

Merge in transit can operate on an international basis, in which bulk shipments from different sources are merged and sent to customers, such as large reseller channels, as one shipment. Timing and synchronization are the key challenges of merge-in-transit, and usually storage areas close to receiving/shipping are needed to hold the earliest arriving inventory.

Merge-in-transit is a distribution model where several shipments originating at different dispatching locations are consolidated into one customer delivery, without inventories at the consolidation points. This removes the need for distribution warehouses in the supply chain, and allows the customers to receive complete deliveries for their orders.