What Is Freight Consolidation? Overview & Benefits
Freight consolidation involves grouping multiple smaller shipments into one large shipment to reduce costs. It sounds relatively simple, doesn’t it? Well, it is, and it isn’t.
The goal is to consolidate, plan, and schedule multiple shipments with minimal supply chain disruptions so that companies get what they need when needed. Only then do companies genuinely see the benefits of consolidation.
When planned and managed by the right freight carrier, freight consolidation can reduce costs, prevent risks, reduce emissions, and enhance quality control.
Reduces Shipping Costs
A common misconception about freight consolidation is that it involves one company pooling all shipments together to generate savings, which simply isn’t the case. The high costs of not getting shipments on time would surpass any savings gained by waiting. In most cases, companies cannot afford to wait that long.
Much planning is involved in freight consolidation—an experienced carrier analyzes their established routes and determines which shipments can be combined without causing delays. LTL loads or less-than-truckloads will turn into FTL or full truckload shipments, which helps lower costs per unit.
Prevents Unnecessary Risks
The more often you ship, the more likely you encounter problems, including shipment damage due to mishandling or from the transportation itself. Consolidating your shipment reduces that risk because it reduces how often it is handled. Furthermore, FTLs don’t have as many loading and unloading points as LTL freight, which lowers the likelihood of shipments being damaged from mishandling.
Consolidation reduces emissions because fewer trucks are used to deliver the shipments. This is a significant benefit to environmentally conscious businesses. Fewer trucks mean fewer emissions and a smaller carbon footprint for companies. In a world where today’s consumers are loyal to environmentally conscious brands, this benefit appeals directly to that audience.
Enhances Quality Control
Using an established freight carrier ensures that your shipments are adequately packaged, palletized, and always correctly positioned and stored inside the truck. Consolidating multiple LTL shipments means your freight won’t be loaded and unloaded numerous times at different locations, which lowers the risk of shipment damage due to mishandling.
Learn More About Freight Consolidation From TSI
TSI has consistently exceeded customer expectations for over 40 years and provides cost-effective logistics solutions throughout the United States, Canada, and Mexico. We operate 24/7 across multiple terminals and warehousing locations and provide real-time GPS tracking on all shipments.Please visit our blog for more transportation and logistics resources, or contact us today to learn more about our services and capabilities.