Improving the productivity of the shipping process for your business reduces costs and increases efficiency throughout the supply chain.
In fast-paced industries with many moving parts, ensuring that you have shipping methods to promote adequate transportation will help maintain efficient supply and demand processes for your company and your customers.
Particularly if you are shipping smaller shipments or a limited number of pallets, consolidated freight shipping is a cost-efficient method to conserve space and promote productivity throughout the entirety of the transportation process.
What is Consolidated Freight Shipping?
Consolidated freight shipping maximizes space by compounding multiple less than truckload (LTL) shipments in a single truckload. Consolidated freight shipping is typically the preferred option for those transporting a smaller quantity of shipments because exporters pay only for the portion of the entire container they use, and they can fill the remainder of the truckload with other shipments.
The left-over portion of the truckload can be useful for holding LTL shipments from the same shipper or shared with other exporters’ shipments, making this option more economical than non-consolidated LTL shipping fares.
Once freight trucks arrive at the distribution facility, LTL shipments are divided and split into separate vehicles for the last leg of the trip until they reach their delivery destination.
The Advantages of Consolidated Freight
- Cheaper
- Less Risky
- Quality Control
- Consistency
- Sustainable
- Better Customer Experience
Consolidated Freight Is Cheaper
When transporting smaller shipments, spitting freight capacity with other exporters allows you to save on the rates you spend — and reduce shipping fees for your customers.
Customers will be more likely to make smaller, recurring purchases if the shipping cost is lower, meaning that more orders will come in at a lower cost to you, with more overall profitability for your business.
Consolidated Freight Is Less Risky
LTL shipping takes the risk out of the shipping process by diminishing the number of stops made and reducing the amount of handling.
Instead of dispersing inventory to many distribution centers, consolidated shipping moves freight from pickup directly to a consolidation center for delivery.
Less handling means a reduced risk of damage, and fewer touch points equate to a faster, more streamlined trip.
Consolidated Freight Offers Quality Control
Once consolidated freight reaches the warehouse, cargo can receive quality control checks to ensure it has not been damaged in transit, allowing for the resolution of potential issues before delivery. If replacement products are needed, they will deliver to the warehouse faster and at a lower cost with consolidated freight shipping.
Consolidated Freight Offers Consistency
Consistency is the key to developing and maintaining customer relationships. Customers rely on exporters to ensure their products are in stock and received on time, without potential damages.
With consolidated freight shipping, shippers can transport stock ahead of time to consolidation centers so inventory can ship as soon as orders are placed, allowing for faster delivery times and less risk of damage for their valued customers.
Consolidated Freight Is Sustainable
Deconsolidation typically results in a greater amount of freight trucks and, therefore, an increase in the fuel used.
Cargo gets transported via fewer trucks with consolidated freight ways, reducing your carbon emission footprint and promoting your business's overall sustainability.
Consolidated Freight Offers Better Customer Experience
Ensuring that customers are satisfied with their experience is a necessary and crucial step in creating lasting, long-term relationships.
Consolidating cargo allows faster delivery times, lower customer shipping costs, and streamlined packaging methods for the best customer service experience.
Potential Drawbacks to Consolidated Freight
- It’s Time Consuming
- It Requires More Planning
- It’s Difficult To Find Carriers
Consolidated Freight Is Time Consuming
Consolidated freight shipping can add extra time to the transportation process. Before shipping, packages need to be combined into one truckload.
Once they arrive at a distribution center, cargo must be separated before heating to individual delivery destinations. It is vital to schedule extra time into your transportation itinerary before the shipping process begins.
Choosing a freight transportation provider with thousands of active carriers and effective tracking technology can speed up the shipping process.
RPM leverages our network of over 30,000 carriers and receive fast-paced, reliable services. Our tracking technology ensures a streamlined and transparent shipping process — from pickup to delivery.
Consolidated Freight Requires More Planning
Consolidated freight shipping requires more planning than traditional full truckload (FTL) shipping methods.
To ensure that packages are effectively consolidated, it is necessary to evaluate the size and weight of each shipment.
You may need to combine packages from separate shipments or rearrange orders to limit the space and ensure all packages arrive on time.
If you decide to work with consolidators directly, they can help to manage coordination and aid in the distribution of packages.
Difficult To Find Carriers for Consolidated Freight
Due to the added planning that goes into consolidating freight shipments, some carriers are unwilling to ship consolidated freight. Using a freight transportation provider, such as RPM, you can cross searching for a carrier off your checklist.
RPM will leverage our carrier network, fulfill your unique shipping needs, and provide you with detailed information to ensure that the transportation process moves smoothly and efficiently.
Who Ships Consolidated Freight?
Consolidated freight shipping is the most efficient, cost-effective option for exporters shipping smaller palletized freight shipments.
Consolidating freight is also a great option if shippers are exporting LTL shipments since shipments from multiple sellers can be transported in the same freight truck, allowing businesses to save time, lower costs, and promote productivity.
Is Consolidated Freight Best For Your Shipping Needs?
Each business has unique shipping needs that can vary depending on the size of their shipments, how they need to be transported and what they are shipping. Consolidated freight shipping may be the best option for you if you are transporting smaller LTL shipments. By combining orders and freight from other shippers, your business can increase productivity from the supply to the distribution processes.
Are you interested in consolidated freight? Check out our website to learn more about how RPM can help you.
Sources:
Consolidated Freight | FreightCenter
A Shipper’s Guide to Consolidated Freight | truckstop.com
What is Consolidated Shipping and Why is It Important? | FreightQuote
