Consolidated Shipment Delivery Meaning and Benefits

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Many retailers use the consolidated shipment delivery method to save on costs, packaging, improve the shipping quality and reduce the risks. Read what is the meaning of consolidated delivery and how can you use it for your business.

Read more about:

• How to reduce the shipping costs for your business?
• What is a consolidation?
• What is deconsolidation?

What is the meaning of consolidated shipment delivery?

In the logistics industry, consolidated delivery means several packages will go to the final destination in one container. The shipments that arrive from various suppliers and locations are consolidated into a single shipment to save on shipping costs.

More precisely, retailers who ship more in volume will place smaller packages together with goods from other retailers into one big container. This can also be referred to as multi-stop truckload or less than truckload delivery.

The combined shipments into one container go to the exact location, and once they arrive at the final destination, they are deconsolidated and passed to local courier companies for last-mile delivery.

Consolidated international shipping is a budget-conscious and eco-friendly option as it has minimal impact on the environment.

Read more about:

• LCL – Less than Container Load shipping
• FCL – Full Container Load shipping
• LCL vs. FCL shipping
• Sea freight shipping

Benefits of consolidated shipping

• Cost-efficient option – The shipper does not have to pay for the whole container but only the space portion they are taking. Meaning, the shipper pays for the delivery according to the space they are using in the container or the trailer.
• Reduced risk of damage – There are fewer stopping points so that the goods will travel from the shipper’s place to the consolidation centre and the receiver. The fewer stopping points means less handling that further reduces the risk of damage while transferring the goods.
• Improved quality control – Usually, the receiver will notice if the shipment matches the description and has any damage. With the consolidated international shipping method, the goods will undergo quality control at the consolidation centre, giving the shipper a chance to replace the items before reaching the end destination if they show any signs of damage.

You may also be interested in?

• How to optimise freight costs?
• How to pack and load pallets for shipping?

Things to check to best benefits from consolidated shipping

Many courier companies offer the service of package consolidation. There are also companies specialised only in packaging and consolidating shipments. In case you don’t have your means to consolidate a shipment and you plan on turning to a specialised company, check the following:

• Re-packaging options – Some companies that offer such services will unpack the boxes, throw away the packaging material and place the items into one bigger container. While other companies place all the smaller boxes into a bigger one, without removing the items out of the boxes.
• Dimensions of the box – If the company is offering only the packaging service and not the shipping service as well, make sure that the sizes of the boxes they use are within the limits accepted by the courier service provider whose services you will use.
• The time necessary to consolidate a shipment – Make sure you are aware of how long it takes for a shipment to be consolidated so that you can plan the shipping accordingly.
• Delivery address – Make sure you are sending all items to the same address. For multiple addresses, you might need to choose the service for numerous package shipments.
• Consolidating photos – Does the company take photos during consolidation? This is the best proof to have in case the shipment gets damaged or is lost during transit. Take all the cautions. If you are concerned about how the company manages consolidated shipments, ask them if there is an option of taking photos and providing you with the proofs.

Read more about:

• Packaging guidelines
• Best packaging materials
• Types of shipping boxes

Consolidated international shipping – Price influence

The size of the box and the cushioning materials are some factors that may add up to the final cost of your shipping. However, when shipping consolidated shipments internationally, all the excess cushioning materials will be removed, and the company taking care of this process will apply the correct box to use the space effectively.

The route and the space used in the container will also add to the final price of the consolidated international shipping.

When should you avoid consolidating your shipment for delivery?

• If some of your items are temperature sensitive and need a particular environment to avoid spoilage.
• If you need to deliver the items to different customers.

Overall conclusion and meaning on consolidated shipment delivery

• Consolidated shipments can be great cost savers. For every package shipped, a handling fee applies. This means that even though one package is only 0.5 kg, the associated costs for pick-up and handling could be the same as for a package of 20 kg. Multiply the cost with the number of packages, and most certainly, the final cost will exceed the cost of shipping one single big shipment. By making a consolidated shipment, the minimum charge per package will be eliminated.
• Consolidated shipments circumvent the payment of customs duties. Shipping brand items in separate boxes might indicate that the parcel contains valuable items, which must be subject to customs. If, instead, the items are repackaged in an unbranded cardboard box, the only evidence of the parcel’s value will be the invoice.

Many shippers are not familiar with what package consolidation is and how they can benefit from it. The logistics industry is filled with different shipping options, and you might have to delve deeper to find the right shipping solution for your needs and pocket. Contact us to receive the best choice for your requirements!

Want to know more?

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