Freight Consolidation

Freight consolidation is the grouping of shipments to obtain reduced costs or improved utilization of the transportation function. Consolidation can occur by market area grouping, grouping according to scheduled deliveries, or using third-party pooling services such as public warehouses and freight forwarders.

By consolidating shipments, companies:

  • Can achieve economies of scale in transportation, reducing overall costs.
  • In addition, freight consolidation can help improve delivery times by allowing for more efficient coordination of multiple deliveries.
  • Finally, freight consolidation can also provide security and risk reduction through the aggregation of shipments from multiple sources.

Ultimately, freight consolidation can provide significant cost savings and improved delivery times for companies engaged in transportation.

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Logistics Freight Consolidation and Its Benefits to Shippers – Supply Chain 24/7

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