At Fruition Logistics, we take pride in being Less-Than-Truckload (LTL) experts. This is the core strength of our business and a specialty that we think most, if not every business can benefit from using. We are going to continue our series of explaining some of the key benefits of using LTL. In this blog, we will focus on having more control and cutting costs via Pool Distributions and Consolidations.
A Full Truckload (FTL) is often considered the most efficient ans optimal way to ship freight, but this can only happen if the volume is there. That said volume can be extremely large and often time impossible to fill for some businesses. If the quantity or volume is not there, an alternative is frequently used by putting together truckloads through multiple stops.
It is evident that there are opportunities where multiple stop truckloads are suitable. A financial issue can arise when there are particular details of a specific situation that haven’t been considered. Additionally, putting together the correct and most efficient multiple stop truckloads can be a challenge in itself. In order to make multiple stop truckloads work economically, certain elements must collectively come together. Distance, miles, orders, and receivers need to align properly.
Beyond just the economics of the load itself, there are critical elements to be taken into consideration, including the human and logistics of coordination itself. The time, energy, and those required to control the information and evaluate the costs must be taken into consideration. If there are few patterns to the orders coming in, every week can be a brand new beginning. Problems in scheduling and delays can create fundamental hurdles.
For all that is done, there may be other hidden expenses. Shipments nonetheless can “waste” capacity because of low load factors. Last minute order alterations can throw the entire plan off. Additional orders can imply that LTL is never eliminated. Also, most carriers are not fond of making additional stops and the result of this can be a premium fee being added. Many drivers are not properly trained to handle these styles of loads, and ultimately prefer the basic, one pick – one drop runs.
Thankfully, solutions have been created to combat the hardship of multiple stop truckloads. Introducing: Pool Distribution and Pool Consolidation. This has proven to be a great alternative when someone constantly has multiple loads of many small shipments.
Pool distribution is gathering one or more truckloads of LTL shipments at an origination, taking it to a staging zone and redistributing those shipments to multiple different trucks for distribution. Pool consolidation is the opposite, it picks up multiple LTL shipments from a couple of different locations, and brings the shipments to a relevant staging place for purchaser pickup or loading it onto a truck for line haul. At Fruition Logistics, we have the ability to handle both for our customers. .
Because of their flexibility by nature, these types of programs have obvious benefits:
- They optimize time spent and more than often save money over multiple stop truckloads
- They eliminate charging for shipping air because they maximize the shipment with other distributor’s shipments
- They adapt last minute changes in orders despite what that volume is, which optimizes production.
- They eliminate the weekly shipment puzzle, freeing customers time to get their job done properly and effectively.
Does pool distribution and/or pool consolidation sound like a potential solution for you and your business? Contact Fruition Logistics today to learn more!
