Shipping goods as consolidated freight is one of the best ways that shippers can start saving money as soon as the very next shipment leaves the warehouse floor.
Consolidated shipping is the method of taking LTL shipments from multiple shippers, and shipping them all together in one full container as a full truckload. By doing this, shippers share the cost of the truckload, only paying for the exact physical space their goods are occupying in the truck.
This method of shipping is ideal for shippers who only have a lot of smaller shipments. If they want to avoid paying higher rates shipping them out as multiple LTL or FTL shipment when they don’t meet that definition, there is consolidated shipping.
To help you better understand the advantages of this shipping method, and hopefully steer you in the right direction, we have come up with an overview of the top three benefits to consolidated freight shipping.
One of the most popular consolidated shipping benefits that shippers like to point out is the cost. Generally, consolidated shipping is quite a bit less expensive than going the LTL route.
If you have multiple small shipments that are traveling to roughly the same area, consolidating them into one truckload is not only logical thinking, but it will also save you money that you would have otherwise spent to ship them out individually.
Even the best carriers have been known to have a fumble here or there, resulting in accidentally damaged packages. This is something that usually happens during the LTL process.
See, when a driver is making multiple stops and needs to continually rearrange the load to pull goods out at each stop it increases the risk of damage.
When this happens, it often results in the shipper eating the costs to rectify the situation as they scramble to try and keep their customer satisfied and the relationship intact.
By shipping products as consolidated freight, the chances of your goods getting damaged are drastically lessened as there is no extensive handling of the goods since they only need to travel from your warehouse to a consolidation center, and from there, the goods are sorted and sent out to your customers in the same vicinity.
The fewer hands on your products, the better.
This should go without saying, but your customers are loyal to you for very good reasons. The biggest of those reasons being that you can get their products out to them on time, and without damage.
By doing your research and utilizing the most efficient and reputable shipping methods, you not only can save money, but you also build value into your supply chain and develop long-lasting relationships with your customers. And there is nothing more valuable than keeping a good rapport with your customers. But this is something that is only achieved through trust and a solid track record.
However, it’s not just about your customers…
Through consolidated shipping, you have the opportunity to establish working relationships with other businesses who are reliant on LTL shipping. Build a relationship with those companies if they ship to the same areas as yourself. Doing this allows you to form a shipping partnership and start building full truckloads together. Build enough of these partnerships, and you have yourself a small network. Through this network, you can significantly reduce the cost for yourself and everyone in that network.
Lastly, doing long-term business with the same carrier over time fosters a valuable relationship. The most successful shippers know that a substantial relationship with your carrier can lead to locking in future discounted rates.
Consolidating freight is a method that any business can utilize and potentially see decent returns from. This is especially true for smaller operations that are already shipping lots of smaller goods regularly.
By consolidating all of your shipments for a specific region, you can save a large chunk of money. By partnering with other shippers currently making use of LTL shipping, the money you save can turn into a mountain of cash!
Not sure where to start? No worries, that is where Redwood Logistics can help!
Just send us an email using our contact form and let us help you set up a consolidated freight shipping strategy that will save you money, build value into your supply chain, and help you build shipping partnerships that are beneficial to all.