Concept

Merge in transit

Summary
Merge-in-transit (MIT) is a distribution method in which several shipments from suppliers originating at different locations are consolidated into one final customer delivery. This removes the need for distribution warehouses in the supply chain, allowing customers to receive complete deliveries for their orders. Under a merge-in-transit system, merge points replace distribution warehouse. In today's global market, merge-in-transit is progressively being used in telecommunications and electronic industries. These industries are usually dynamic and flexible, in which products have been developed and changed rapidly. Merge-in-transit allows company to assemble and transport goods simultaneously. It aims to remove the needs for distribution warehouse in the supply chain, targets at cutting down the amount of inventory stored in firm warehouses into zero, and allows customers to receive complete deliveries of their orders. Thus, transportation expenses can be lowered. From customer perspective, merge-in-transit provides value since it facilitates the delivery of a single and consolidated shipment rather than multiple smaller shipments. This also helps firms to reduce the overall inventory and process lean manufacturing. There are basically two ways of approaching merge-in-transit, either merging and forwarding or synchronization. Merge-in-transit depends on several factors, including the availability of multiple vendors for a customer, regularity of shipments to the customers, order size and the availability of a strategically located merge point. When these elements have been identified, a MIT operation can be created. A logistics company receives the goods from multiple origins, and assembles them at a single point near a customer, which is called "merge point" or "merge centre". Shippers pick up separate shipments from several suppliers and deliver them to a location near their final destination (merge points), where a merge process is being undertaken. However, no colossal inventory is stored at these merge points.
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