How freight consolidation cuts costs without cutting service
Logistics departments have become a key focus for organizations looking to lower costs. Pressured to find ways to do more with less, LTL freight consolidation may be the answer.
Companies without a freight consolidation program are sending out trucks with empty space and leaving money on the table. Working with an experienced 3PL could save as much as 25% of your total freight cost.
So what’s keeping companies from making the switch?
Challenges in moving to LTL Freight Consolidation
Identifying consolidation opportunities is a daunting and time-consuming task. Sifting through data, understanding the characteristics of each LTL shipment and determining which shipments to combine, can be simplified with the help of an experienced 3PL.
Putting the plan in action can also be complicated. Coordinating multiple carriers and managing carrier relationships is a 3PL’s specialty. Taking advantage of their established infrastructure and expertise can help save time and money. This is especially helpful in cold-chain with a limited number of LTL reefer carriers.
Overcoming the pain to change can be an organizational challenge. As with any new opportunity there is resistance to adopting a new way of doing things. However, if you always do what you’ve always done, you always get what you’ve always gotten. Improvement necessitates a commitment to change.
Reaping the Rewards of LTL Consolidation
Beyond cost savings, freight consolidation has benefits that can make it easier for you to take good care of your customers.
Simple straightforward pricing makes it easier to figure out costs. Instead of having to determine how much an LTL carrier will charge, rates are based on miles traveled and the weight of your load.
Freight consolidation eliminates the domino effect and can help meet receiver demands. One missed delivery does not result in subsequent deliveries being late and can provide faster transit times than a LTL program.
Less risk of product damage is another benefit. With LTL freight consolidation, the product is touched fewer times, reducing the opportunity for damage and eliminating the headaches of OS&D claims.
With fewer trucks and fewer miles, LTL consolidation can also lower an organizations’ carbon footprint.
Organizations resistant to establishing a consolidation program may be sacrificing their ability to grow. Finding the right managed service partner can make it easy to lower costs and outweigh the resistance to change.
INTERESTED IN LEARNING HOW TRADEMARK CAN HELP YOU LOWER COSTS ACROSS YOUR SUPPLY CHAIN?
CONTACT US. 800-646-2550
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