How a 3PL Advanced WMS Solution Powers Efficient Consolidated Shipping
Consolidated shipping is a logistics process that combines multiple orders into one, large shipment. This process of cargo consolidation has been used by the operations team for years to maximize efficiency and cost savings for shippers. Robust technologies like predictive analytics enable real-time, efficient load optimization while meeting sustainability goals, making order consolidation a strategic move for reducing carbon footprints.
Cargo consolidation, consolidated freight, and order consolidation are other names for consolidated shipping. This strategic approach allows shippers to streamline the delivery process, enhance delivery efficiency, and reduce costs. This will eventually help save money on freight and fuel costs, minimizing the number of shipments and reducing the environmental impact.
The compelling benefits of consolidated shipping help increase overall customer satisfaction with its increased delivery speed and efficient and accurate order tracking features.
Optimize Delivery Speed with a 3PL Advanced WMS for Consolidated Shipping
Partial orders or orders that don’t utilize full capacity are quite common in supply chains. Using specialized carriers is one choice, while consolidated shipping is another great choice, thanks to its impeccable cost savings and improved delivery process and efficiency.
Consolidated shipping is a process in logistics where a consolidator groups together multiple less-than-container-load shipments from different shippers into a single full container shipment. This is an effective method that benefits shippers with preferred rates. Once the container reaches its ideal location, it is deconsolidated back into the original LCL shipments.
Remember, consolidated shipping in logistics can be complex and a time-consuming procedure; however, it requires deep, careful planning. Businesses need an advanced 3PL WMS solution that supports consolidated shipping to help them optimize deliveries, reduce costs, and boost overall performance and growth.
Why Businesses Need a 3PL WMS Strategy for Consolidated Shipping Success
Freight rates increased in 2014 due to rising operational costs, rerouting, port congestion, and other reasons. These challenges made a consolidated shipping approach even more critical to navigate supply chain challenges successfully and to improve your bottom line. Here is why you need a perfect consolidated shipping strategy:
- Increasing Transportation Expenses: Transportation costs continue to rise, and this is a major issue for supply chain managers. Global shipping expenses are more changeable than oil prices, making it difficult to predict cash flow, creating difficulties for setting shipping budgets. Shipping partial truckloads but not choosing consolidated shipping drives up per-unit costs.
While less than truckload shipping may seem a flexible choice but it often involves hidden costs. These can include administrative fees and unexpected losses from damage or missing goods.
- Logistics Functions Aren’t Smooth as They Should Be: Despite improvements in technology, logistics functions remain inefficient in several areas. Underutilized truckloads not just increase the costs per unit shipped but also highlight inefficiencies in resource allocation.
** Other issues include: **
- High administrative burden: Managing multiple shipments and coordinating with various carriers adds labor, time, and complexity to already stretched operations.
- Time lost while managing carriers: Working with too many providers for a single shipment can pull teams away from more strategic, value-added activities. Navigating these challenges through streamlined, consolidated freight management using a modern, scalable 3PL WMS, businesses can cut down on wasted space, streamline administrative tasks, and make better use of transportation and labor resources.
- Supply Chain Volatility Is a Big Concern: Freight charges are highly unpredictable, determined by capacity constraints, fuel price rise, and global trade challenges. This unpredictability exposes businesses to fluctuating costs and added risk. Without a proper consolidation approach, companies may face:
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Limited carrier options and negotiating ability: Depending on fragmented shipments makes it challenging to negotiate preferred rates or secure capacity with preferred carriers. They might have to go with underutilized truckloads to meet delivery deadlines. By consolidating shipments, companies can increase negotiating ability, reduce the number of carriers needed, leading to more reliable and easy access and better contract terms.
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Securing capacity challenges during peak seasons: During peak periods, like the holiday season, often fragmented shipments are not given priority in comparison to consolidated loads. This can result in costly delays and missed delivery commitments. Explore how advanced fulfillment management systems can boost the efficiency of your e-commerce order processing fulfillment and help navigate these challenges seamlessly.
Strategic Benefits of Consolidated Delivery
Consolidated delivery, also known as consolidated freight or shipment consolidation, offers a broad spectrum of strategic benefits for both individuals and companies alike. Here are the following benefits:
- Cut Down Costs, Significant Savings: With the combination of multiple small shipments into one larger shipment, enterprises can cut down their transportation costs significantly. Shipping space sharing with others results in a reduction in total costs, reducing overall individual expenses.
- Economies of Scale: Consolidating shipments increases total volume, which enhances bargaining power with carriers. This can lead to better freight rates, reduced handling charges, and overall improved cost efficiency.
- Optimized Resource Use: Consolidation maximizes the use of transport equipment and cargo space. Fewer partially loaded trucks mean more efficient logistics operations and better utilization of available resources.
- Reduce Environmental Impact: Consolidated shipping demands fewer vehicles on the road and that means less fuel consumption and reduced greenhouse gas emissions. The consolidated shipping strategy encourages eco-friendly practices and helps businesses meet sustainability goals.
- Faster Deliveries: Consolidation can optimize delivery routes and reduce the number of stops, leading to faster transit times and more efficient delivery.
- Enhanced Security and Reduced Risk: With fewer handling points, the chance of loss, theft, or damage is significantly reduced. Consolidated shipping ensures better control and security over cargo during the transportation process.
- Simplified Customs Process: Consolidated shipping can simplify the entire customs clearance process including customs documentation and processing by combining multiple shipments into one container.
- Improved Customer Experience: With more streamline and consistent delivery schedules, you an improve overall customer experience. Businesses can meet deadlines more efficiently and reduce the likelihood of delays.
- Scalability and Flexibility: Consolidated shipping is adaptable to companies of all sizes. Small businesses can benefit from lower costs, while larger organizations can scale operations efficiently using consolidated logistics.
- Stronger Collaboration and Networking: Consolidation fosters collaboration among shippers, logistics providers, and carriers. It opens up networking opportunities and promotes shared efficiencies across the supply chain.
Optimize Your Consolidated Freight with FulFillor - A Leading WMS
Fulfillor’s WMS simplifies the complexities of freight handling and consolidation. By automating and optimizing warehouse and logistics operations, Fulfillor is an all in one fulfillment solution that ensures seamless inventory tracking, order management, and shipment coordination. With automation and minimizing manual tasks, we’re a leading WMS that helps reduces errors and accelerates the consolidation process, making freight handling more simpler and efficient.
Schedule a call or book a demo of Fulfillor WMS to see it in action.