What is Pool Distribution and Why do Businesses Use It?

Pool distribution is a shipping method that consolidates multiple shipments from a single shipper into a single truckload for transport to the same geographic region. Unlike less than truckload (LTL) shipping, which combines multiple vendor shipments, pool distribution focuses on pooling multiple shipments from the same distribution center, offering significant cost savings, improved transit times, and a reduced carbon footprint.

By leveraging a pool distribution strategy, businesses can streamline their supply chain, reduce the number of trucks on the road, and improve efficiency at every step of the pool distribution process.

What is Pool Distribution?

Think of pool distribution as the shipping equivalent of a carpool: multiple shipments destined for the same region are grouped together into a single truckload. These shipments are then transported to a pool point facility or regional terminal, where they are sorted for final delivery to multiple delivery points within the same area.

This approach differs from traditional LTL shipping, which may combine shipments from different companies in the same truck. With pooling multiple shipments from the same shipper, businesses can achieve maximum usage of their trucks, minimize transportation costs, and reduce the number of workers required for handling individual shipments.

How Pool Distribution Works

Consolidation at the Distribution Center

The pool distribution process begins at the shipper’s distribution center, where multiple shipments are collected and prepared for transport.

Transportation to Pool Points

Shipments are loaded onto a single truck and moved to a pool point facility or regional terminal, optimizing truck availability and shipping schedules.

Sorting and Local Delivery

At the pool point, shipments are sorted according to their final destinations. Local delivery trucks then handle the final mile delivery, ensuring timely delivery to multiple destinations within the same geographic region.

This process reduces the total distance traveled, lowers transportation costs, and decreases the number of trucks on the road, contributing to a smaller carbon footprint.

Benefits of Pool Distribution

Pool distribution offers multiple advantages for businesses of all sizes:

• Significant cost savings: Pooling multiple shipments into a single truckload reduces shipping costs compared to sending individual shipments separately.

• Improved transit times: Fewer stops and coordinated deliveries lead to faster shipments across the same region.

• Better supply chain control: Businesses gain more visibility over shipments, allowing adjustments during the pool distribution process.

• Sustainability: With fewer trucks on the road, carbon emissions are reduced, supporting greener logistics practices.

• Efficiency: Pool distribution requires fewer workers, less administrative effort, and can make full use of existing truck capacity.

Who Uses Pool Distribution?

Pool distribution is particularly useful for businesses that regularly ship multiple LTL size shipments to the same geographic region. This includes retailers with high sales volume, furniture stores, and companies delivering goods to multiple destinations within the same city or region.

Smaller businesses can benefit if they have enough shipments to fill a truckload over a given period, while larger companies can consolidate hundreds of shipments efficiently using a pool distribution model.

Is Pool Distribution Right for You?

The suitability of pool distribution depends on factors like shipment frequency, size, and destination:

• If your business regularly ships to multiple destinations within the same area and can fill a single truckload, pool distribution can offer significant savings.

• If shipments are infrequent or very small, traditional LTL shipping may be more efficient to avoid delays in final delivery.

• Using an experienced shipping partner with an established carrier network can ensure optimal truck availability, proper use of specialized equipment like lift gates, and streamlined logistics.

By carefully considering these factors, businesses can determine whether a pool distribution strategy will maximize efficiency, reduce shipping costs, and improve overall supply chain performance.

The Role of a Shipping Partner

A shipping partner plays a crucial role in pool distribution. They coordinate shipping schedules, delivery dates, truck availability, and handle the use of specialized equipment.

By using a Freight Management System (FMS) like Transvirtual, businesses can streamline these processes, track shipments in real time, and optimise truckloads for maximum efficiency. Contact us today for a free demo.

Frequently Asked Questions