Friday, May 29, 2009

Low Cost Logistics

My wife and I were looking for an exercise machine. After looking around we found that WalMart online had the best price. Shipping was also less than what the local sporting goods store wanted for home delivery. So, we ordered online and waited. Turns out Walmart shipped it directly from the manufacturer via Fed Ex ground. WalMart paperwork was attached to the boxes.

I'm not sure, but I suspect that WalMart doesn't carry any of this manufacturer's inventory in stock. That would keep inventory costs at a minimum. Since they ship direct from the manufacturer, shipping costs are also minimized.

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