Emergent trend – Logistics consolidation in the industry
February 13, 2020
The logistics industry is gradually transforming to incorporating freight consolidation strategies. Freight consolidation optimizes current capacity, builds more volume to lower costs and reduces the use of labour, which can cope with challenges and pressures the traditional operations are facing.
Expansion of e-commerce platform
Fighting against online retailer, larger companies are expanding their online shopping platform to support their competitive advantages of solid purchasing and retail network. They success by economies of scale, and the promotion of e-commerce further enhance the shipment volume, thus freight consolidation helps to save expenditure and combat rising transport rates.
Orders are getting smaller and more frequent
Retailers must capture the advantage to combine smaller shipments to obtain a larger total volume in lowering transportation costs. Consolidation helps to reduce product handling, save administration charges and encourages better control over the shipping and delivery schedule.
High priority shipment on a rise
Customers are more willing to pay a premium for a quicker delivery. To make this happens, retailers have to look for a more visible supply chain with the use of technology and data. Tracking of product is crucial to maximize the use of storage space and maximize the speed and accuracy of handling.
Companies with comparatively rigid company structure and network may find it difficult to meet ongoing dynamics in the market. They can seek help from third-party logistics providers (3PLs) to improve carrier networks and keep costs in check. Working with a 3PL effectively reduces the risk of shipment and expands the logistics options. 3PL provider can offer unbiased consultation, industry expertise, vast carrier network, truck sharing opportunities and technology support.
Crown Logistics specializes in serving clients in cosmetics and health supplements, hotel and travel retail with excellent services for warehouse, inventory and distribution management, which can save your money on shipments. We also offer value-added services that can be tailored to your requirement. Check with us whether freight consolidation is possible for you.