Consolidated Shipping 101
Welcome back to week three of Onelive shipping school. Remember to think of these as 101 intro courses before we get started with more advanced topics like, how to optimize your pick pack, and more industry trends. So far we’ve covered domestic shipping basics, and international shipping basics which you can grab by subscribing to Your Trusted State of Commerce on YouTube and Following the Show on Spotify. Let’s jump right in.
Today’s episode is Consolidated Shipping 101. We’ll be covering the benefits of consolidated shipping, how to find a consolidator, and if this is the right tactic for all or part of your order volume.
For those of you who don’t know what shipping consolidation is it’s the outcome of combining or consolidating multiple small shipments, traveling to the same destination into one full load or as close to a full load as possible. Let’s get started.
Consolidated shipping is great for:
Minimize spending costs: Shippers are able to pay bulk rates since they are shipping multiple products at the same time instead of sending them separately. If you use less space than the truckload you usually get stuck paying for the entire space. This is especially useful for companies who commonly send a couple pallets of product at a time.
Reduce the risk of damage: Damaged goods are still a big problem for shipping platforms. Consolidated shipping can reduce the amount of touchpoints the freight has to go through. There is less loading and unloading of the product due to the reduced number of transfers. It is also better for customers because it is less likely for something to interfere with the delivery process and cause it to be late.
Enhance quality control: If problems come up with a shipment and it has already been shipped, consolidation gives you more control over target dates and production schedules. You can be notified more efficiently if something goes wrong, which makes it less likely for products to be shipped to the wrong destination. This allows for you to execute quality control once the product arrives at the warehouse.
To recap - Although consolidated shipping is not the best option for every business, it holds many benefits that can be valuable for many.
How to find a consolidator
- Do your research on consolidators and which would fit best with your business.
- Think about what’s important to your customers.
- Once you select a consolidator, you’ll want to create an account with them and agree on rates and terms.
Is consolidating right for you?
- This method is most beneficial for someone shipping palletized freight.
- It is required that your pallets are able to move seamlessly across the dock.
- Shippers should have a full understanding of consolidator shipping and how it works to guarantee accurate delivery.
Please feel free to email me directly with any questions firstname.lastname@example.org or go to onelive.com/start.