Inbound Consolidation

How freight consolidation cuts costs without cutting service

 
article_5_banner.jpg
 
 

rethink inbound transportation cost savings

Logistics departments have become a key focus for organizations looking to lower costs. Buyers and receivers, especially in the food service industry, have been pressured to do more with less and manage more inbound transportation themselves.  A buyer may have an opportunity to save $200 by having a shipment picked up.  That sounds like a no-brainer.  But what they’re not focusing on is costing more.

SINGLE SHIPMENT VS. CONSOLIDATION PROGRAM

Instead of concentrating on the cost savings of single shipment look at the cost savings of a freight consolidation program.  By gathering and repositioning smaller, widely scattered shipments into a single truckload, you only pay a premium rate to get it to the pool point.  Savings can be realized by negotiating the cost of transporting the full truckload to a distribution center.  The shipment you pick up to save $200 may be the one shipment that maximizes truck space and reduces the costs of all the shipments on board.  It could save as much as 25% of the total freight cost.

Freight consolidation also reduces the deliveries at your dock.  Receiving 10 LTL shipments becomes receiving one truckload and a lot less hassle.

Challenges in moving to LTL Freight Consolidation

Building full truckloads of frozen and refrigerated shipments is tricky. Sifting through data, understanding the characteristics of each LTL shipment and determining which shipments to combine, can be simplified with the help of an experienced 3PL. 

Putting the plan in action can also be complicated.  Coordinating multiple carriers and managing carrier relationships is a 3PL’s specialty.  Taking advantage of their established infrastructure and expertise can help save time and money.  This is especially helpful in cold-chain with a limited number of LTL refrigerated carriers.

How to measure consolidation savings

There’s a mystery to freight allowances and discounts.  How does a buyer determine if a deal is good? Without some robust analytics it’s difficult to know.  Looking at the full picture and running reports can help identify where consolidation makes sense. 

Companies without a freight consolidation program are sending out trucks with empty space and leaving money on the table. Finding the right managed service partner can make it easy to find increased cost savings.

INTERESTED IN LEARNING HOW FREIGHT CONSOLIDATION CAN HELP LOWER COSTS?

CONTACT US. 800-646-2550

 
 
 

 
fresh.png
 

Product Protection

KEEPING YOUR FOOD
SAFE AND FRESH

Trademark provides an unbroken chain of cold.  With a clear understanding of all requirements upfront, real time monitoring and ongoing communication, we ensure your shipments are on time, intact, on budget with no surprises.

 
 
blueback.jpg