What is a Consolidator in Logistics?
A consolidator is a company that provides services to group shipments, orders, and/or goods to facilitate movement. They work with transportation providers to combine multiple orders into one shipment, making it easier for the customer and providing cost savings. Consolidators typically have contracts with various transportation providers, which gives them access to discounted rates.
There are many benefits to using a consolidator in logistics. For one, it can save the customer money on shipping costs. Consolidators are able to get better rates from transportation providers because they offer volume discounts. In addition, using a consolidator can make it easier to track packages and consolidate invoices.
Consolidators typically provide make-bulk consolidation services, meaning they will combine goods from multiple customers into one shipment. They can also provide break-bulk consolidation, which is when they combine goods from multiple shipments into one order. This is useful for customers who are not able to ship all of their items in one go.