Benefits of consolidating cutomer service center

March 30, 2017There is a core principle behind shipping costs; as volume goes up, per unit shipping costs go down.In practical terms, this means it is often to shippers’ advantage to combine shipments (consolidate) whenever possible to get a higher total volume, which will, in turn, lower overall transportation expenditures.As mentioned previously, a 3PL that specializes in serving clients who produce similar goods can facilitate the sharing of trucks.

Unfortunately for emerging brands and small- to mid-sized companies, having large enough pallet quantities isn’t always possible.Both are working in the moment and usually disconnected from each other.With more supply chain visibility and collaboration between sales and logistics departments, transportation planners can see what orders can be consolidated over a broader range of time and still meet customers’ delivery expectations.Ideally, on-site consolidation happens as far upstream as possible at the point of order pick/pack or even manufacture.It can require additional staging space within the facility, however, which is an obvious limitation for some companies.

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