With time, customers have become more demanding of their service providers. They expect the best quality, and they want it now. They want to enjoy all the benefits of premium service but pay a reasonable amount for it. This is the reason why e-commerce has become such an attractive business niche.
Freight consolidation is one of the most promising options for companies who want to compete with giant retailers and are seeking solutions for a fast, convenient, cheaper option to ship their goods.
In this article, we will explain the main idea behind freight consolidation and how it works.
What Is freight consolidation
Freight consolidation is a process when cargo from different shippers is combined into one shipment to reduce the costs of transportation. The term is also used when shipping goods as part of a larger shipment (consolidation) that gets delivered to a third-party logistics provider. This allows businesses with less-than-truckload (LTL) loads to transport products in full truckloads (FTL).
Usually, freight consolidation services include storing and distribution of goods at the warehouse before they are shipped further or sold directly. This approach helps create a seamless supply chain where goods are stored at one place and then shipped from the same destination to customers.
While many companies are choosing to transport their products via ocean or air freight, others still hesitate whether this method is suitable for them. So, let’s take a look at how cargo consolidation works and what its main advantages are.
How can It save money for you and your customers?
The main benefit for companies using this method is reduced cost per unit shipped, because consolidators ship goods in bulk, which allows them to negotiate discounted freight rates from carriers. They are then able to pass these savings on to their customers.
You save money on shipping by consolidating orders into one shipment. We negotiate with carriers for lower rates because we are in constant contact with them, so shipping costs are minimal if you choose a reliable provider, like Velocity Global for your shipping needs.
Streamlined logistics operations
We are experts in logistics and supply chain management. We know how to streamline processes to provide fast, reliable deliveries at affordable rates. You will have more time to focus on growing your business while your freight is handled by experts.
Tracking tools make it easy for you to monitor your shipments in real time. Use your smartphone or computer to track down your cargo at any time from any place.
It is eco-friendly to combine several loads and transport them all at once instead of using separate trucks for the same amount of freight. Apart from the lower prices, solid route means you use less fuel and reduces emissions.
Lower risk of damage
With less handling and fewer stops, the risk of damage decreases significantly.
Whether you are deciding if the consolidated shipping matches your needs, partnering with an experienced logistics provider will simplify the process for you. If you need any help with your shipment, contact our experts or get a free estimate on your load.