Everything you need to know about freight consolidation
If you’ve shipped LTL before, you’re familiar with freight consolidation, a method that combines multiple shipments into one trailer. But did you know the same principle can be applied to a full truckload strategy?
If you have multiple loads that need to go to the same (or a similar) destination, organizing them into a single truckload shipment can save you money and streamline the entire freight shipping process. Gain more insight into each benefit and when you should utilize this solution.
How combining shipments can benefit you
Consolidating your shipments presents many advantages. Here are some examples of the benefits of merging your loads.
1. Reduce cost
Consolidating into a single truckload can create operational efficiencies that lead to cost savings. Depending on the current market, FTL can be a more cost-effective solution than LTL, even if the full trailer isn’t utilized. This is because the cost per unit of weight or volume decreases as the trailer's capacity is maximized.
This method also decreases the total number of shipments that need to be loaded and unloaded. This can lead to lower labor costs (lumper fees) as your unload/load times will significantly reduce.
The final way consolidated shipments save you money is by reducing the equipment used to transport your freight. Fewer trucks on the road lead to reduced fuel costs and overall transportation expenses.
2. Cut transit time
Through direct routing (point A to point B), your single shipment will arrive at its destination quicker than if ran LTL. While your shipment will still need to be loaded at its origin and unloaded at its destination, this process can be done once rather than having multiple loads and unloads if sent out individually.
Reducing the number of shipments also lowers the probability of delays caused by scheduling conflicts or issues at handling points along the route.
3. Streamline your documentation
Consolidated shipping reduces your overall shipment count and simplifies the paperwork associated with your loads. Instead of getting separate BOLs for each individual shipment, combining your loads will produce a single set of documents. Further, invoicing and all customs documents will be reduced. This puts you in a good position to save time while reducing transportation documents.
4. Enhance supply chain agility
Combining your shipments enhances the agility of your overall supply chain by boosting flexibility and responsiveness.
A responsive supply chain can match market trends. Responding to changes in demand becomes simpler under this solution because you can adapt to demand patterns by adjusting the size and frequency of your shipments. This keeps you agile within the marketplace and can improve customer satisfaction by reducing lead times and meeting expectations.
Having one singular load to ship instead of multiple also gives you flexibility within your inventory management systems. Adjusting inventory levels according to changes in demand or market trends becomes easier if you have fewer shipments to account for.
When merging your loads makes sense
Now that you know the benefits of using the consolidated shipment technique, it's essential to know when to use this strategy to your advantage. Here are some examples of when combining your loads may make sense:
- You regularly have multiple small shipments going to the same region or destination
- Your suppliers or customers are located in close proximity to one another
- You experience peak season or promotional volume increases
If your business can identify with any of the above, then consolidated shipping may be a good fit. It’s time to call your provider and ask about your consolidated shipping options!
Ready to ship?
Whether you are already shipping consolidated loads or want to explore your options, ArcBest is here to help. Backed by 100 years of service, ArcBest is positioned as an expert in all solutions, including truckload. Call us today to learn more about how we can best serve your supply chain.
