What is the Consolidation Point?
The consolidation point refers to combining multiple shipments into larger loads within the maximum capacity of the transport. It allows shipping companies to reduce their transportation time and save costs. Shipping companies must abide by legal regulations in different cities while ensuring that carriers are not overloaded.
Significance of Consolidation Point in an E-commerce Shipping and Delivery
Consolidation points indicate the maximum carrying capacity of a container, and it also helps various freight forwarding companies to abide by the ever-changing transport regulations in multiple countries.
- Reducing product damage: The consolidation point of a carrier carries multiple shipments altogether within the maximum limit of the transport. This reduces the in-between loading and unloading of items, which reduces product damage.
- Optimal use of space: A consolidation point allows optimal use of available space by transporting multiple products simultaneously.
Prerequisites of Consolidation Point and How It Works
Consolidation points are called to action when there are multiple LTL or less than truckload shipments with a common middle-mile destination. When the mentioned requirements are fulfilled, the mentioned steps follow.
- Point calculation: A consolidation point is computed per the container’s dimensions and maximum carrying capacity. .
- Palletization: The LTL shipments are stacked together as individual pallets.
- Consolidation: The pallets are placed strategically within a container while considering the maximum limit or the consolidation point.
Use Case with Consolidation Point
Suppose a truck carrier has multiple orders to transport to one destination. The truck carrier will consolidate the product within the truck carrying capacity. This allows them to save transit time, and transportation costs while abiding by the maximum carrying limit of the truck.