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Why do traders split order shipments?

Asked a year ago

I've been thinking about this for a while but still can't quite wrap my head around it. Does anyone else here also split their shipment orders? What are the pros and cons of doing so? Cheers!

Kenneth Greene

Monday, May 15, 2023

Traders often split mostly shipments for the following three reasons:

  1. Reducing shipping distances and costs.
  2. Enabling quicker delivery for customers, enhancing their satisfaction.
  3. Optimizing inventory management by fulfilling orders from multiple warehouses or distribution centers.

However, splitting orders is not a deal of total win; there are also some drawbacks. Splitting shipments can cumulate unnecessary shipping costs and complexities in tracking multiple packages. It may also result in inconsistent delivery times in case the packages arrive separately.

The bottom line is before you decide on splitting shipments, you need to consider critical factors like how much it costs, what your customers expect, and how easy it is to move things around logistically.

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