Freight consolidation and 3 key points should be noticed
To any small business, freight consolidation is the best form to deliver goods. You will have your logistics provider combine consolidation in order to utilize the shipping
What is freight consolidation?
Freight consolidation is known as a logistics method that a carrier combines partial consolidation (or shipments) inside a specific location into one shipping container. Then the container will head to a destination called waypoint to split the consolidation into smaller shipments. After that, they will be shipped through directly or indirectly to their last locations.
Freight consolidation streamlines the delivery process. It helps to save time and money.The carrier can get higher total volume, which will lower the shipping cost. They do this by taking multiple packages or partial loads into one shipping container whenever possible. These combined consolidations can belong to one or multiple suppliers. They can be delivered together by several ways such as ground, sea and air together. Whichever form of transportation, it’s important that these shipments will be heading in the same direction to a particular location. It’s also called waypoint, where carriers separate the combined shipments and then forward them to their final destinations. In freight consolidation method, the goods could arrive at some specific places such as customers’ houses, warehouses and retailers.
Freight consolidation can benefit your small business in many aspects. Without this method, you may have to choose between paying more money for a partial load of freight and waiting longer out to have a full shipping container ready to go. Freight consolidation also offers more opportunities and flexibilities. As it works, even if you have several individual crates of goods, you still can ship them to any destinations.
What are the advantages of freight consolidation method?
Freight consolidation takes cheaper shipping costs. It has become a common logistical method to small businesses since their logistics carriers would offer them significant bulk rates. Owing to this, small scale-business owners can avoid the raise of costs when transporting partial loads. They also can pass part of financial benefit down to their customers to create further opportunities in their partnerships.
Another key advantage of freight consolidation is that it creates more reliable shipments. It’s essential to pick a reliable logistics provider, have a good plan and some alternative ones. The freight consolidation can head your parcels to an accurate destination in a favorable way. As a result, the goods will arrive on time, which helps you to win your customers’ relief and satisfaction. The crucial point is to build a specific schedule to meet your customers’ requirements. In the long term, that also raises productivity and efficiency in your supply chain.
Freight consolidation brings less risk of cargo damage than other types of transportation. It’s clear that you can benefit with regard to safety as your consolidations travel in fewer vehicles. In fact, your cargo may face some serious risks such as damage and loss. You shouldn’t worry about these risks if your carriers support consolidation. Their experience will help them to handle your shipments, as a result, the goods will reach the right destination in proper condition.
This type of shipment also has less environmental impact. For anyone who wants to decrease their business activities’s impact on the environment, freight consolidation is the best choice. The fewer partial loads transporting, the less harmful emissions. Meanwhile, consolidation also leads to the reduction of fuel used.
What are the drawbacks of freight consolidation?
While considering the benefits that freight consolidation can provide, here are several potential disadvantages:
Freight consolidation may cause some potential inconvenience. To some extent, this strategy takes a longer amount of time for shipping goods. The reason is that the consolidation as well as de-consolidation processes create extra work to the logistics system. Be aware of this drawback because you can experience some unwanted issues such as delays for instance. That may frustrate your customers or cause the lack of goods on hand in your warehouse.
Despite its convenience and flexibility, freight consolidation is not a perfect strategy for all shipment types. For example, if your parcels contain fragile, perishable or hazardous products, it’s essential that you shouldn’t choose consolidated freight. Since these goods can be broken or expired during the delivery. As a result, you may lose money and have to face other issues with your customers. Especially hazardous products can cause some serious accidents when they are put with other goods. Don’t forget that all deliveries have to go through customs, therefore, can bring frustrating postponement with freight consolidation.
When choosing freight consolidation method, you need to do well-prepared plans for your shipments. It’s important to pick a proper logistics provider who can support consolidated freight at a reasonable cost. Keep in mind that you will have to do extra work and are able to solve problems with delays. The key is to come up with problems happening in the process and handle them. That certainly ensures that the delivery arrives on time following your customers’ demand.
Finally, if you’re looking for a strategy that helps to save money on shipments, the above information may be useful. Consider whether freight consolidation is possible for your business.
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