What is Bill and Hold (legal)?
As described by the U.S. Defense Logistics Agency: This method allows todays cost-conscious customer to take advantage of the savings of a non-depot shipment within the needed response time. In clothing and textiles, the manufacturer produces the item, is paid for his product, and then places it into DLA-owned inventory. The vendor receives orders only for what is on hand at his location, eliminating the guesswork often encountered under a quick-response (QR) contracting technique. Orders are shipped from the contractors depot directly to the customer. Contractor locations operating under bill and hold are exempt from the depot surcharge, which saves the customer money. Shipments from vendors are under a four-day delivery requirement, which equals the current depot delivery time.
