The Benefits in Reducing Freight Costs
Freight deconsolidation is a great way to ensure that items arrive quicker and at lower costs. In this article, we discuss what freight consolidation is, its benefits and how it works.
What is freight deconsolidation?
Freight deconsolidation is a process that involves breaking down single shipments of cargo into a number of smaller shipments which are then processed and delivered directly to a local central distribution centre. At Broughton Transport, we work with suppliers to ensure that the process of freight deconsolidation runs smoothly and that individual packages are tracked and delivered safely.
Why not freight consolidation?
Although in theory, freight consolidation should cut costs by combining similar shipments into one, it’s unfortunately not that simple. Freight consolidation involves an added step of complexity to the process. Freight consolidation typically involves more touchpoints and delay while shipments are bundled together, resulting in slower shipments and greater risks of the process not running smoothly. There are scenarios where freight consolidation can be used, and the process might work better but freight deconsolidation is becoming more effective.
The benefits of freight deconsolidation
There are many benefits of using freight deconsolidation as part of the delivery process including better tracking and inventory management, reduced freight costs and quicker delivery of freight to their final destination. For retailers and businesses wanting to keep costs down and that are handling time-sensitive products such as fresh-food, this means products can arrive much faster on store shelves or in a customer’s basket - and at a price they can afford.
According to NRS*, freight deconsolidation can reduce transport costs and reduce ‘the number of deliveries for a retailer by as much as 50%’.
Keeping stock levels (and storage costs) down
In recent years, the expectations of customers have increased as they now expect quality products to be delivered quicker than before. Companies that don’t have stock or that can’t deliver almost straight away will lose business. In the past, this has meant having to stock large amounts of products at high costs. It has also meant a need to invest in planning and forecasting to ensure that stock isn’t left in storage too long.
Another benefit of using freight deconsolidation is that stock costs can be reduced. If products are delivered quicker then there is less need to build up surplus stock. Traditionally retailers and manufacturers have held higher stock levels in order to cope with spikes in demand and to ensure that customers don’t wait too long to receive their goods but with quicker delivery times from using freight deconsolidation, customers can receive goods quicker without the need to hold high levels of inventory.
The importance of collaboration
For freight deconsolidation to work, collaboration and strong communication between different partners is crucial. If different freight forwarders don’t collaborate and willingly share resources, then it makes the process of freight deconsolidation difficult to manage. At Broughton Transport, we work closely with a network of partners to ensure that your goods are delivered quickly, efficiently and safely. Get in touch by calling 01225 700647 to find out more.
The ultimate fresh delivery for your business
At Broughton Transport, we specialise in the delivery of fresh and frozen produce with our modern fleet of freezer and refrigeration lorries and understanding of our customers’ needs.
This experience and equipment combined with our use of freight deconsolidation means that we continue to delight retail businesses who need their produce delivered quickly and efficiently while keeping goods fresh or frozen.
If you would like to find out more about our high standards or to get a quote, get in touch today by calling 01225 700 647 if you'd like to discuss your haulage requirements or read more about our refrigerated haulage or logistics services.