Consolidation
A consolidation is the process of combining two or more shipments in order to realize lower transportation rates. Inbound consolidation from vendors is called make-bulk consolidation; outbound consolidation to customers is called break-bulk consolidation.
There are a few different types of consolidations that can be performed:
- Inbound Consolidation – When several smaller shipments from different suppliers are collected and sent as one larger shipment to the buyer. This is often done when there is a discount for volume orders.
- Outbound Consolidation – When several smaller shipments from one customer are collected and sent as one larger shipment to another customer. This is often done when the customer wants to take advantage of a volume discount from the supplier.
- Line-Haul Consolidation – When several smaller shipments are collected and sent as one larger shipment over a long distance. This is often done when there is a discount for volume orders.
- Pooling – When several smaller shipments are collected and sent as one larger shipment, but the items in the shipment are not necessarily related. Pooling can be used for both inbound and outbound consolidation.
The benefits of consolidation include:
- Fewer shipments means less administrative work – consolidating shipments will save time on paperwork.
- Fewer deliveries means less fuel costs and emissions – consolidating your shipments means that shippers make fewer trips to transport your goods, saving on fuel costs and reducing your carbon footprint.
- Less handling means less damage – consolidating your shipments minimizes the amount of handling each individual shipment undergoes, which reduces the chances of items being damaged in transit.
Consolidation can be an effective way to save time and money on logistics operations.
Related Videos
Full Truckload, LTL and Consolidation
Cross Dock, Consolidation and Warehousing : Global Trade Conference (Part 23)
Why use freight consolidation
The Benefits and Challenges of Multi-Shipper Consolidation
-
Full Truckload, LTL and Consolidation
-
Cross Dock, Consolidation and Warehousing : Global Trade Conference (Part 23)
-
Why use freight consolidation
-
The Benefits and Challenges of Multi-Shipper Consolidation