The Advantages of Freight Consolidation for Warehousing
Using freight consolidation offers benefits to both the freight forwarder and end customer. The most obvious benefit is cost savings. Because warehouse freight consolidation bundles small shipments into a single shipment, the process reduces the overall transportation fuel costs for the shipper. With lower total shipping costs, retailers also save money, enabling them to charge the end customer less.
When using a 3PL’s freight consolidation services, a warehouse also benefits from the provider’s dedicated fleet, as opposed to investing in an internal trucking system. A 3PL’s fleet doesn’t require the capital necessary to operate a dispatch system, train drivers and ship materials. This enables the fleet to ship freight according to regular schedules in the most efficient and economical way possible.
Using consolidated warehouse freight management also provides access to the entire distribution chain because many 3PLs have existing relationships with both warehouses and retailers. This access can help your business build relationships with distributors and customers alike. Other benefits of freight consolidation include:
- Quicker delivery times
- Improved visibility into your orders
- Pricing simplicity
- Higher service levels
- Less congestion at the loading dock
- Greater sustainability
- Increased control over due dates and production schedules
Is Freight Consolidation Right for my Warehouse?
Freight consolidation services can help any warehouse or distribution center. But choosing the right one for your business is important to ensure you reap the benefits you expect. Before choosing a freight consolidation service, consider the 3PL provider in regard to:
- Experience in freight consolidation
- Network of agents and business partners
- Transportation options (i.e., shipping via air, rail, ocean and truck)
- Customer service reputation