Certified in Logistics, Transportation and Distribution (CLTD) 2025 – 400 Free Practice Questions to Pass the Exam

The manufacturer storage with drop ship fulfillment method is particularly advantageous for high-value, sporadic items that can be customized. This approach allows manufacturers to keep a limited inventory, addressing the unique requirements of individual customers without incurring the costs associated with stocking a broader range of products.

When a product is high in value and customization options are available, using drop shipping minimizes the risks associated with holding excess inventory, which could lead to obsolescence or increased costs. Instead of relying on traditional inventory management techniques, manufacturers can produce the goods as needed and ship directly to the customer, ensuring that the specific customization requested is fulfilled efficiently.

This model is less suitable for mass-produced items that are consistently needed, as these would typically benefit from bulk storage to meet ongoing demand. Low-value, high-demand products and everyday low-cost items do not leverage the advantages of customizable production and may be better suited for traditional supply chain methods that can more effectively manage inventory levels and distribution in a cost-efficient manner.