Question

Does Costco purchase directly from the manufacturers?

Answer 1

Costco buys the majority of its merchandise directly from its manufacturers and routes it to a cross docking consolidation point or directly to its warehouses. Costco depots receive contained based shipments from manufacturers and reallocate these goods for shipment to their individual warehouses , generally in less than 24 hours. This maximizes freight volume and handling efficiencies, eliminating many of the costs associated with traditional multi-step distribution channels.