What does the term 'shipping' refer to in supply chain management?

In supply chain management, the term 'shipping' specifically refers to the act of physically transporting goods or materials between locations. This encompasses a variety of activities, including the movement of products from a manufacturer or supplier to a warehouse, retail store, or directly to the customer. Shipping is a crucial component of the supply chain as it ensures that products reach their destinations in a timely and efficient manner, playing a significant role in inventory management and customer satisfaction.

The importance of shipping within the broader context of supply chain management lies in its impact on logistics operations, cost management, and the overall flow of goods. It involves various modes of transportation such as trucking, air freight, shipping by sea, and even rail, each selected based on factors like cost, speed, and distance. In this context, the emphasis is on the actual movement of items, making it distinct from processes such as receiving goods, packaging, or handling documentation. Each of these aspects plays a part in the supply chain, but shipping specifically focuses on the physical transfer of products.