Blind Shipping
Definition of Blind Shipping
Blind shipping is a logistics practice where the origin or destination of a shipment is deliberately concealed from one or more parties involved.
The method is used to protect the identity of suppliers or customers in scenarios where businesses want to keep their supply chain information confidential.
In blind shipping, the shipping documents, like the Bill of Lading (BOL), are modified to omit or alter details so that the recipient does not know the true source of the shipment.
How does Blind Shipping work?
In a typical blind shipping arrangement, two versions of the BOL are created.
The first version contains all the actual shipping details for the logistics provider, while the second version is a "blind" document that conceals certain information. For example, the recipient might see only the seller’s address while the supplier’s details remain hidden.
When do I use Blind Shipping?
Blind shipping is most commonly used in e-commerce, drop shipping, and wholesale industries where businesses want to keep their suppliers confidential.
It’s particularly useful when a company acts as an intermediary and doesn’t want the customer to bypass them and deal directly with the supplier.
Why use Blind Shipping?
The main reason for using blind shipping is to safeguard business relationships and maintain control over the supply chain. By concealing the true origin of goods, businesses can prevent customers from contacting their suppliers directly.
Examples of Blind Shipping
A typical example of blind shipping is in the drop shipping industry, where an online retailer sells products sourced from overseas suppliers. To protect the retailer’s business, the shipment appears to come from the retailer’s location rather than the supplier’s.
Another example is a wholesaler in the UK, sourcing office supplies from multiple manufacturers. The wholesaler uses blind shipping so that their customers continue ordering through them rather than contacting the supplier.
What are the advantages of Blind Shipping?
Blind shipping offers advantages to those who want to keep a competitive edge:
- Supply chain management: By allowing businesses to keep supplier details hidden from customers, blind shipping helps prevent customers from bypassing the business and purchasing directly from the supplier.
- Brand consistency: Blind shipping allows businesses to maintain their branding and control the customer experience.
- Hands-off approach: Blind shipping supports a low-overhead and hands-off approach, especially in scenarios like drop shipping. Companies don’t need to handle inventory or warehouse management, which then reduces costs.
Blind Shipping vs. Drop Shipping
While blind shipping and drop shipping share similarities, they serve different functions.
Drop shipping is a business model in which a retailer does not keep goods in stock but instead transfers customer orders and shipment details to either a manufacturer or a wholesaler, who then ships the goods directly to the customer.
The retailer acts as an intermediary without handling the physical goods. In this model, the customer typically does not know that the goods are being sent directly from the supplier.
On the other hand, blind shipping is a shipping method used within various business models, including drop shipping, where one or more parties involved in the shipment remain unaware of each other’s identity.
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