Freight Consolidation: The Daily Definition
What is Freight Consolidation?
Freight consolidation refers to grouping multiple packages or partial loads into one shipment to be more efficient. The goal here is to minimize the amount of effort required to ship each individual package. This is considered a useful best practice for your shipping strategy, especially if you’re shipping many different orders in the same direction.
Let’s say you have a shipment that’s ready to be sent out. Everything is accounted for, but the order only fills up about half the space in your freight. You also have another order going out around the same time that’s of equal size, heading in the same relative direction. So, you’re faced with a choice. Do you pay for two separate freights for these two orders, or combine them to be shipped together? If you’re using freight consolidation, you’ll likely be going with the latter option.
Our two cents:
Grouping your shipments together can be a huge time and money saver, and luckily, you have plenty of options to put it in action. You’ll likely reconsider your criteria for combining shipments with each different circumstance. These criteria can relate to market area grouping or the schedule of your shipments. When combining orders, you can also rely on third-party pooling options, like public warehouses and freight forwarders. There is an important caveat though. If you’re choosing to combine your orders like this, it’s important that you establish a waypoint where the orders will be split and sent to their own locations.
It may seem like it requires extra effort to sort these details out. In a way, it does. But once you create a strategy, your shipping costs will be cut left and right. It’s just one of the many savvy moves you can make that can all add up to a more efficient operation style. If you’re looking for even more tried-and-true efficiency boosters, check out our guide!