Cost efficiency through consolidation
If you’re a company that ships products, you need to be aware of the many shipping options available to make sure you aren’t spending too much on shipping costs. One of these options is freight consolidation, and it might just be a superior alternative to your current methods especially if you have regular small air freight shipments.
Freight consolidation is a process in which several small shipments that are all being sent to the same location will be bundled, or consolidated in a single air/freight shipment, or assembled in one container then shipped to the intended destination The process is not only beneficial to the shipper, but also the customer or retailer to whom the products are being sent.
Because of the consolidation and shipping multiple products all at the same time rather than sending multiple smaller shipments separately, shippers are able to pay bulk rates. This makes freight consolidation ideal for companies who generally send a few quantities of product at a time or those who have a high frequency of smaller shipments. Instead of sending them all separately, the shipments will be consolidated and shipped in one container or one large air freight shipment.
While the items in the shipment most often come from a single supplier, other times can come from multiple supplier locations. Consolidation makes shipment large enough to attract a lower rate and helps to keep costs down.
During the freight consolidation process, a company’s products will be picked in according to orders received and all orders are consolidated into one shipment.
There are many benefits to using freight consolidation, including simply reducing headaches through more frequent shipping process, but it all starts with and revolves around cost savings.