A consolidated Freight shipment entails combining multiple shipments from different shippers to make one complete truckload shipment with numerous stops. The most significant advantage of consolidated shipping is that shippers can earn preferred rates, and the supply chain is optimized for the shipper, reducing costs for him as well.
Why Do Shippers Prefer Consolidated Shipping?
Ideally, small businesses prefer consolidated shipping with only a few pellets of freight that need to be shipped in a single container. Generally, shipments come in from various shippers and locations, and to avoid paying a high rate, shippers prefer one consolidated freight shipment.
We’ve outlined some of the benefits of consolidated freight shipping and some potential challenges associated with it.
Benefits of Consolidated Freight Shipping:
Here are some of the benefits of consolidated freight shipping.
Cost-efficient:
This is the most crucial benefit, according to many shippers. They believe that only one or two-thirds of a container is being used, then you will typically pay for the entire container. Consolidation is an alternative that allows you to share the shipping costs while sharing the container space. Shipments destined to be delivered in the same vicinity are ideally chosen for consolidated shipping, and shippers pay for only the area that their shipment takes on the container.
Reduced Risk of Damage:
Now that freight shipping has become so advanced; still, damaged freight is a problem. Consolidated shipping not only is a cost-effective way but also solves the problem of freight damage. It also minimizes the on-again, off-again handling as the shipment goes from the shipper to the consolidation center and then the receiver. With fewer touchpoints, the risk of damage is reduced manifold.
Improved Quality Control:
Consolidated shipping allows shippers to take control of their goods more timely in case of any quality control alerts. This means that if your shipment is shipped and there’s a problem with it, you would typically have to wait for the shipper to replace it with a new product. Hence, a longer timeline for the receiver, but with consolidation, you can perform quality control measures when the product reaches the warehouse. This, in turn, saves time and helps you control problems with your order.
Improved Customer Satisfaction:
You want to satisfy your customers in a business, which is a great benefit in itself. Customers may love your product, but they will ultimately leave you if they face delays in deliveries. So, consistent shipments to retailers with time consideration in mind is a requirement.
But by using freight consolidation, you get your products safely and within time. Consolidation allows you to develop an inventory, where when an order comes in, your partner sends the product directly to the consolidation center. This will enable you to stay ahead of the demand and satisfy your customer’s needs as well.
Some Potential Challenges:
- Finding a reliable carrier that offers consolidated shipping is a problem sometimes.
- A little demanding in planning and organizing, consolidation requires some extra effort in coordination and planning.
- As consolidation requires a few additional steps compared to regular shipping, it can be more time-consuming.
Is Consolidated Shipping Ideal For You?
Consolidated shipping is a cheaper and efficient solution for your freight if you transport palletized freight. Having a complete understanding of the whole process involved in consolidation is crucial for shippers. So, choosing a reliable consolidator makes it much easier for your business operations.