Cargo consolidation: economic benefits and advantages

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How to save on delivery if you order goods for business in small batches? There is a profitable solution - cargo consolidation , which is the combination of several small batches into one large one. Both the recipient and the carrier benefit from the registration of consolidated cargo. We will tell you about the advantages of combined delivery and how consolidation occurs in this article.

What is cargo consolidation
The essence of consolidation is that cargo from different owners arrives at a warehouse, where for the convenience of delivery and loading and unloading operations they are combined into one large one. The volume and weight of the combined cargo will depend on the means of transport by which it is transported. Consolidated cargo is suitable for any type of transport: automobile, rail, air, sea.

What is cargo consolidation

In a consolidated cargo, its parts may not armenia email lis be identical, but have similar characteristics or comply with uniform storage and transportation conditions. For example, different types of household appliances or textiles and footwear can be collected in a consolidated cargo.

What are the savings in consolidation? If a small batch of goods is transported in one container, the customer is obliged to pay for the transportation in full for the entire volume of the container, that is, not only for the volume of their goods, but also for the empty space. Consolidating several batches into a consolidated cargo will allow each of the owners to pay only for their volume and weight, which ultimately significantly reduces the cost of delivery and affects the cost of the goods or raw materials being transported.

Consolidation of cargo occurs according to two principles:

A specific (or adjacent) destination or one delivery direction.
One recipient of several consignments of goods.
Consolidation can occur either without intermediate storage in a warehouse or using areas for short-term storage of cargo.

What are the advantages of groupage cargo delivery:

Reduces the cost of transporting goods.
Reduce the number of trips and idle runs.
The internal volume of transport is used to the maximum.
Reduce customs risks.
Consolidated cargo is sent using one transport document.
Another important advantage: the recipient of the cargo can order the necessary batch of goods with the regularity necessary for running a business, and pay only for the actual volume. Now there is no need to buy goods in large quantities and worry about where to store it all, or spend money on renting a warehouse where the goods will lie until they are sold and gradually lose their value. A small batch of goods is quickly sold, the business owner compensates for the costs and continues to order goods as needed, without investing money in huge stocks.

How does consolidation happen?
Logistics companies claim that the level of training of warehouse employees plays a huge role in the quality of cargo consolidation. If several loads need to be unloaded on the way to the first destination, they are stacked in a certain order to reduce the time and costs of loading and unloading operations.

How does consolidation happen?

Not only warehouse workers must be qualified, logisticians are also required to monitor consolidated shipments to avoid increased costs, for example, due to extra mileage.

Consolidation occurs in several stages:

Collecting orders for delivery.
Accepted upon receipt at the collection point or warehouse.
Additional packaging is provided (if necessary).
Determine the weight, dimensions, and density of the cargo.
They form groups of goods that can be transported together.
They are developing a delivery route.
They are preparing the documents.
Loading into transport.
Delivered and unloaded at destination.
Transporting cargo this way is economically advantageous over long and short distances. This reduces not only the cost of raw materials and goods, but also the costs of energy resources, wages and depreciation.