Destination (Operations)

Posted in Operations and Supply Chain Terms, Total Reads: 241
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Definition: Destination (Operations)

Destination refers to the place where someone or something is going or the place where something is being sent to. In operations, destination refers to the place where the goods are to be delivered to. In the logistics chain, the final point of delivery of goods/services is referred to as destination.


The term destination basically denotes that the supplier shall deliver the goods as demanded by the buyer to the place indicated by him. At that place, the buyer shall accept the delivery of the goods sent by the seller.


The key element about the place of destination is that it is the physical location at which the goods being transited on arrival change the ownership title. The title of the goods gets transferred from the seller to the buyer upon arrival at the place of destination. The physical custody of goods is then taken over by the buyer.


Since the buyer takes ownership of the goods at the destination place, the process of sale ends. At this point the seller records a sale in his books and the buyer increases his inventory or material value in his books.

 

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