Cargo consolidation: reduction of transport costs

cargo-consolidation-reduction-of-transport-costs-by-onus-insurance

Cargo consolidation is one of the most used strategies within current logistics processes, which consists of integrating several cargos in the same shipment with the aim of reducing operating costs and in turn reducing delivery times through a series of phases, which are:

  1. Receipt of the cargos in a specific warehouse along with its invoices, to be reviewed by the area manager manually or automatically through specialized machines designed for such purpose.
  2. Temporary storage of the goods until they reach the amount of stock required for consolidation by the warehouse for shipment.
  3. Handling of the products according to the customer’s requirements, such as weighing, marking, packaging or other operations previously requested.
  4. Stacking up of all the cargo that will then be distributed in two or more shipments while preparing the relevant documents for shipment.
  5. Shipment of the goods through the correct loading and transport process to be delivered to their destination.

 

In addition to the reduction of operating costs, the cargo consolidation, if properly performed, provides additional benefits such as:

  • Shorter time span between deliveries
  • More space available in the means of transport used.
  • Flexibility when expanding products to other parts of the world.
  • Increased security of the packages to be delivered.
  • Simplification due the use of fewer carriers.
  • Better response to unforeseen events during the transportation process.
  • Greater satisfaction of both the customer and those involved in the shipping process.

 

Once seen the advantages that this type of strategy entails, it is easy to understand the reason why it is widely used in modern logistics; in addition to increasing productivity and efficiency in shipments, it also strengthens the prestige of the logistics company and the seller in the face of customers around the world. Additionally, here we share some recommendations in order to increase the success rates in consolidation:

  • Incorporate the use of technological tools in the different phases.
  • Form alliances with reliable third parties that add value to your company.
  • Implement methods that automate data analysis.
  • Carefully review the different shipping costs related to the modes of transport to be considered.

 

It is important to mention that, regardless of the good management of strategies such as cargo consolidation, having a good relationship with the different partners, or the implementation of technological procedures when starting the shipment of the merchandise, is paramount. Unfortunately, unforeseen events are always present in this sector. Therefore, at ONUS Insurance we know the importance of contracting an accident coverage that offers real protection to the investment;  contact us and we will help you find the best solution to your needs.

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