Freight Management

Freight Consolidation

by Matt Corby, 10 May 2022

The Complete Guide to Freight Consolidation: Everything to Know

Did you know that there are 131 billion packages shipped worldwide each year? About 4,160 parcels are shipped every second. And that number is expected to double by 2026.

In line with increased shipping, freight rates and costs are also increasing over time. To reduce expenses, freight and delivery companies need to consider how they can increase efficiency. You can do this by implementing new methods like freight consolidation and using new and innovative technology.

If you’re looking for a way to make the shipment process easier, freight consolidation is your answer. Freight consolidation can help you manage your costs while allowing you to keep up with the increasing shipping demands. Keep on reading for an ultimate guide to freight consolidation so that you can save on your shipping immediately.

What Is Freight Consolidation?

Freight consolidation allows you to combine multiple shipments that are going to the same location into a single shipment. When it reaches its destination, the shipment gets broken down into smaller parts. Regional delivery companies can deliver those smaller shipments to their destination.

Consolidation services can be especially helpful if you don’t have a full truckload. You don't need to delay your shipment or miss customer arrival deadlines. You can consolidate your shipment with others to maintain full trailer capacity.

How Does Freight Consolidation Work?

Think of freight consolidation as carpooling for your freight. You can save time and money by splitting the cost of a load among several shipments if they are going in the same direction.

The process is usually outsourced to a third-party logistics provider. You don’t need to wait for a full load or have your packages stored at the third-party logistics provider. With the right software, multiple consignments going to a single location are automatically consolidated. This can be done through an app to ensure maximum efficiency. 

A truck can pick up your load at your dock, ensuring that all your special requirements such as refrigeration are met. You can even track your shipment and expected delivery times. When it reaches the destination, it’s separated into packages and delivered accordingly.

Advantages

There are many advantages that can help improve your shipping process. Freight consolidation benefits range from saving you money to increasing efficiency.

Reduce Shipping Costs

Whether you’re using half the trailer or the full trailer, you are still paying for the entire space. You can use freight consolidation to manage this cost. By consolidating your smaller freights, you can pay lower bulk rates and manage your shipping costs.

When you’re able to manage your loads correctly, you can have fewer trucks on the road, saving you money in the long term as well.

Faster Delivery

Your product can move through the shipping process quickly and more efficiently. You don’t need to worry about extra stops as there will be fewer touchpoints.

You can load the product and know that it will be reaching the location directly before being split into smaller loads for delivery. Because of this, it can end up reducing travel times.

Reduced Environmental Impact

You will also reduce the shipment’s impact on the environment. With the packages changing hands less often and fewer trucks on the road, you’ll be reducing your carbon footprint.

Increase Customer Satisfaction

Not being able to ship on time because you don’t have enough containers or packages can result in longer wait times for your customers. You can end missing delivery deadlines that can damage your reputation. With faster delivery, you can stay on top of your customer’s needs.

Improved Flexibility

With freight consolidation, you have flexibility over your options for shipping. Rather than waiting until you have a full load, you have the flexibility to ship faster and more efficiently. Depending on the carriers available, you can get your packages delivered on time with more flexibility and control.  

More Control

With companies moving towards digital technology to support freight consolidation, you have better visibility and more control over the shipping process. With the right tools at your fingertips, you can get alerts if there’s a problem with the shipping. You can track the shipping and be aware of when the package gets shipped and reaches its destination.

Disadvantages

Freight consolidation can help you in many ways, but it also comes with its own set of disadvantages and risks. You can manage the risks if you work with a freight consolidation service that has a solid reputation and a fully developed network of business contacts. 

Finding Carriers

Sometimes it can be tricky finding carriers because of the additional complexity involved in managing these shipments. That’s why you should consider partnering with a freight consolidation service. You want to make sure you work with the right service that ensures that you’re being charged the right rate.

Using new and innovative technology to manage your shipment can make a world of difference.

More Planning Needed

Freight consolidation does require more planning ahead of time. You’ll need to consider pricing, dimensions, and timing to ensure that you’re meeting your deadlines. Luckily, you have access to software including apps that can help you streamline and automate this process. You can have full transparency and control, reducing the time and energy you spend on planning beforehand.

How Can You Make Freight Consolidation A Part of Your Business?

Now you know the benefits of freight consolidation and some of the risks. You might be wondering how to make freight consolidation a part of your business. You can manage the risks of freight consolidation if you work with a full-featured transport management system like Transvirtual.

Transvirtual makes your delivery business simple and more efficient. We’re currently offering a free 30-day trial of the full Transvirtual platform, so you can decide if it’s right for you. 

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