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Supplier-owned transportation is usually leveraged when a supplier is in close proximity to a Postal Service receiving location and the supplier can deliver the product directly to the Postal Service. This type of service is preferable to f.o.b. destination because it does not involve a third party in handling/delivering of the product and the cost of delivery is normally included in the standard commercial price. In a case in which the supplier wants to charge for this service, the costs must be analyzed against the other transportation alternatives by the item manager for best value determination. Property ownership transfers to the Postal Service upon acceptance by the receiving site.
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