Direct shipment is a method of delivering goods from the supplier or the product owner to the customer directly. In most cases, the customer orders the goods from the product owner. This delivery scheme reduces transportation and storage costs, but requires additional planning and administration.
Direct shipment is a common practice in industries that rely on outsourced manufacturing to a big extent, like high-tech, apparel and footwear as well as durable industries. This service is becoming common with the food processing companies, where they want the pre-packaged food to be delivered to their only customers directly from processing unit.