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Tracking Cost of Not Moving at Earliest Date for Routing Choice Consideration

edited May 27, 2020 8:00PM in Transportation Management 7 comments

Summary

It costs money to have product stored at a warehouse, so waiting until later in the pickup window incurs extra expense. How can this expense be accounted for in carrier/route selection when planning?

Content

We’ve run into a unique ask from a customer that is a Shipper.  I have to give a little background for it to make sense though.  Customer buys "Product".  When they choose to buy the "Product", it is already in storage at a 3rd Party Warehouse.  They pay “$x/day” for the "Product" to store there.  They also have their own warehouses that they can transfer the "product" to and store before moving along to the final destination.

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