Benefits clients can get from Consolidating Shipping

9:10pm 5th March 2020





Before trying to sell, you, who offering consolidated shipping services should understand the key sell points and benefits that our services could bring to clients, in order to communicate with, consult and assist your clients well. Check out this article for a clearer picture of numerous benefits your clients could take advantage of. 

1. Significant Cost Advantages

Not only are there numerous advantages to freight consolidation in general, but there are actually multiple ways in which it can save you money. Perhaps the best news is that anyone that is using less than truckload (LTL) shipping can benefit from freight consolidation. The process will save your business money on the shipping end, thus making it more profitable, because the logistics are now more efficient.

These savings occurs because you will share the cost of shipping because you will typically combine your freight with that of other companies on the same truck. No longer will you pay for empty truck space that you don’t use because you aren’t shipping enough product to fill the container. You will only pay for the space your cargo takes up and nothing more.

By optimizing how you use space in the truck in partnerships with other companies who ship to the same region, your overall cost of shipping will be lowered. You’ll also save by getting bulk rates for your shipment should you be able to fill the entire truck yourself with multiple shipments of your own.

And your customers can save too! By combining orders from separate supplies and/or locations and sending them to a consolidation warehouse, they can then have the products shipped together at any time. This allows for more frequent, smaller purchase orders, which means more cash will be flowing into your business, while the retailer you work with saves on their end for shipping.

If you receive shipments, you can also reduce how much you’re spending on freight for your inbound inventory. The all-around savings leads to a better relationship with you and your customers.

By using freight consolidation, you can also avoid the heavy costs that come along with storage sites, inventory management facilities, and having your own fleet of vehicles. Freight consolidation providers can often provide these for you, should they be necessary., in order to manage your consolidation until it is sent to the final delivery. You won’t have to store your shipment on your own — you can send it to the facility where it will be shipped to retailers from, which helps streamline the process should more inventory be needed.

And taking things a step further, having fewer trucks on the road also means you will be spending less on fuel, as well as spending less per-mile on the shipment, since it will be one truck, rather than multiples.

The savings can be significant enough to make a big difference in your company’s bottom line, and help to boost your profit margin. This can be a real difference-maker for mid-sized and smaller businesses who have their profits cut into greatly by shipping costs.

2. Safety Advantages

Things happen in shipping, it’s just a reality of doing business in which you ship products, but using freight consolidation can actually greatly reduce the risk involved. When you have systems in place and use an experienced shipper to handle your freight, your products will be in safer hands. And not only that — it will be in those hands less often, as there are fewer transfers involved in the shipment, meaning it won’t be handled as much as it would in other shipping methods.

Having your freight consolidated means that it will be on fewer trucks, making the odds smaller that one will be involved in an accident. This, in addition to the quality handling of an experienced provider, can give you peace of mind that your consolidated freight will safely reach its destination time after time.

And it actually goes beyond safety too, freight consolidation comes with added reliability as well. Because your product is handled less, there is a lower risk that something will go missing, or be sent to the wrong delivery point. There also is less of a chance that something will interrupt your delivery and cause it to be late. This all adds up to happy customers on the other end of your shipment.

3. Improve Customer Satisfaction

Obviously, having satisfied customers is a great benefit in itself. They may love your products, but you can harm your relationships with customers if you can’t consistently get shipments to retailers on time or keep up with their demand.

Using freight consolidation helps you to get your product to customers quickly and efficiently. This is especially true if you send inventory in advance to the consolidation facility. When an order comes in, your partner will send the product directly from the center, rather than having to come pick up more from your company. This allows you to stay ahead of demand, and be on top of your customer’s needs.

4. Improve Your Customer & Carrier Relationships

By shipping smarter and more efficiently, you will be able to build relationships with other companies, customers, and your carriers.

First, you can establish relationships with other businesses who rely upon LTL shipping. Once you learn that another company sends a similar product, or a similarly-sized load on the same schedule to a shared retailer, you can establish a shipping partnership that will help reduce the costs for both of you and build smarter loads.

As for your customers, they’ll appreciate that you’ve gotten together to come up with a more efficient shipping system to send them products, since they work with both companies. They’ll also appreciate the savings that freight consolidation provides.

Working with the right carriers will make it all happen for you. You need a company you can rely upon to manage your orders and make sure products get to where they are supposed to be, on time. Your products may have special needs that your carrier will have to provide for, and not having a relationship in place will not give you any reassurance that things are going to turn out fine. Consistent relationships with your carrier can also lead to better pricing in the future.

5. Improved Flexibility & Time Management

Using freight consolidation will also improve the flexibility of your shipping needs and make your orders more timely. Freight consolidation often offers faster transit times, as well as reducing wait times for transporting small loads.

Having your freight stored at a consolidation facility will have your products ready to go when they are needed for shipment. This improves your timeline and inventory flexibility, which your customers will appreciate should their needs change. Changes in orders can throw things into a real mess with other shipping options, but having your freight consolidated will not hinder your ability to get your products to your customers on a short turnaround.

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