The Advantages of Bulk Transportation
Bulk transportation is the process of combining large volumes of materials, consumables, liquids, fluids, gasses, or finished goods into one large shipment. This type of transportation is critical to many companies, especially those in the agricultural, construction, chemical, mining, oil and gas, food and beverage, and other sectors that produce and ship large quantities of loose goods.
In addition to providing enhanced protection and reducing space, bulk transportation offers a wide range of benefits. In this blog post, we’ll explore its three primary advantages: improved efficiency, cost-effectiveness, and scalability.
Improved Supply Chain Efficiency
When properly managed, several efficiencies can be gained with bulk transportation.
First, having the right volume of materials on hand reduces the delays and high costs of inventory stock-outs and downtime. Bulk orders improve material utilization and reduce the high costs and time-consuming delays of express shipments.
Bulk shipments are also handled less frequently, which helps streamline supply chains. Loading and unloading smaller volume shipments at different drop-off points to make room for other parcels increases the likelihood of shipments becoming damaged. By shipping in bulk, you can ensure your shipment is loaded and unloaded only once.
Additionally, bulk shipments are easier to track as they often have only one destination. This means your team can spend less time monitoring shipments and dealing with delivery delays. Finally, bulk shipments are the perfect solution to industry-wide material shortages.
- Fewer Inventory Stock-outs
- Better Material/Part Utilization & Allocation
- Reduced Risk of Inventory Damage
- Easier to Track
- Reduces Shipment Delays
The effects of inflation have certainly taken a toll. Rising raw material pricing and increased business costs have impacted companies’ bottom lines. However, working with the right bulk transport company can help you take charge of your costs and increase your profit.
Think about all the savings that can be accrued with bulk transportation. By shipping a larger volume, you can lower the per-unit shipping cost through economies of scale. You reduce handling costs and improve transit time because your shipment has one destination and isn’t loaded and unloaded multiple times.
By shipping bulk, you also save on packaging material costs and reduce labor costs by not having to load multiple smaller shipments. You also gain soft cost savings by allowing an experienced carrier to manage your shipments and supply chain so your resources can be allocated elsewhere.
Finally, the most significant savings come from price protection. Using bulk shipments makes your business more resistant to wild swings in fuel, material, and part costs. A perfect example is industries like automotive and aerospace, which were devastated when overseas semiconductor shortages all but shut down production.
- Lower Per-Unit Freight Costs
- Lower Packaging & Labor Costs
- Price Protection
- Reduced Risk of Material Shortages
Scalable & Flexible
As companies grow, the demand for moving greater quantities of products becomes necessary. Bulk transportation offers this scalability, allowing businesses to adjust their cargo volumes according to market demands and production cycles. And when done by truck, it’s easier to adapt routes and schedules to bypass disruptions, such as traffic or weather-related issues, ensuring a more consistent and reliable flow of goods. Companies can also select from various truck types and sizes. This customization is a critical factor in optimizing supply chains, allowing for specialized handling and transport conditions that other modes of transport might not offer.
Additionally, bulk transportation is adaptable to different types of cargo, ranging from liquids and gases to dry goods and oversized equipment. Fleets can also be expanded or reduced based on demand. Finally, bulk transportation, especially via truck, provides better accessibility to remote or difficult-to-reach areas, unlike rail or sea freight. This accessibility allows for more direct routes and can be critical in just-in-time delivery systems.
- Adjustable Cargo Volumes
- More Efficient Routes & Fewer Delays
- Fleet Customization
- Adaptable to Different Cargo Types
- Ability to Reduce & Expand Fleets
- Improved Route Accessibility
Learn More About Bulk Transport Today
Bulk transportation can be even more advantageous when you partner with an established long-haul freight carrier like TSI. Founded over 40 years ago, we have an expansive footprint and established routes across the United States, Canada, and Mexico. We can help you reduce costs and improve efficiencies with our established truck fleet, 24/7 customer service, and GPS real-time shipment tracking.
Contact us today to learn more about our transportation services and capabilities.