Consolidation of your packages for a more profitable transport
Having your packages delivered one by one is more than just an inconvenience! It increases your storage and transportation costs, while consolidating your packages has the opposite effect. The low cost of manufacturing has made China one of the most important players in global sourcing. As a result, larger quantities, varieties and volumes of products are being transported over longer distances.
As a result, transportation costs and delivery times have also increased. When sourcing involves long-distance transport, choosing the appropriate container size and quantity to order is a complex decision. This is particularly difficult when large volumes of relatively small products (*smaller than standard size containers) are transported over a long distance. To solve these problems and streamline the supply chain, innovative practices and methods such as package consolidation have been applied. Consolidation in logistics is the process of grouping several packages in one vehicle (container, airplane, ship, truck, etc.) or in one location (storage, warehouse). The ultimate goal of a consolidation strategy is to help companies manage their sourcing or procurement process efficiently. However, consolidation has many other benefits:
– Reduce your total transportation and international delivery expenses
– Minimize transportation costs per unit
– Use storage resources more efficiently
– Optimize the capacity of a full container
– Reduce the risk of damage by packing multiple packages tightly together
– Receive all your packages at once
Challenges of consolidation:
When you decide to use the consolidation strategy, there are some things to consider and whether you have all the information you need to proceed.
FCL (Full Container Load) or LCL (Less than Container Load):
It’s relatively easy to choose the right container size when the goods being transported fit in a standard size container and you’re using an FCL. In a perfect world, all your goods would fit perfectly in a large square box and be shipped immediately, but this is almost never the case. In many cases, companies must use a small portion of a large container, defined as an LCL. In an attempt to take advantage of the full capacity of the containers, some companies increase the quantity of their orders beyond what is indicated by the inventory management system. This results in increased inventory expenses. In addition, it can lead to overages and higher storage costs.
Coordination and planning:
Several functions in the supply chain must be coordinated for an effective consolidation policy. It takes time-consuming planning to ensure that your orders are consolidated, prepared, packaged and shipped at the right time.
In addition, consolidation requires close collaboration with your various suppliers. Your choice of supplier and the number of suppliers you work with can have a significant impact on the flow of goods and the overall consolidation process. To learn more about how to choose the right supplier, check out our article on sourcing:(link article 1)
When, how and what to consolidate:
Another important aspect in deciding to consolidate your orders is understanding when to consolidate packages, and also how to decide which orders to consolidate. If you don’t have the essential information, you can easily negate the benefits of consolidation and end up paying even more for inventory and transportation. Take glassware, for example; it can break simply by packing the wrong volumes and quantities together. In any case, seek professional advice and avoid unnecessary risks.
To maximize the benefits of a good consolidation program, you can use the expertise of a sourcing agent who will do all the preparation, planning and coordination with your suppliers on your behalf.
The RM Sourcing Agent will not only handle the consolidation, but also the picking, packing and shipping of your orders. With many years of experience and our presence in both China and France, we can provide you with good solutions for your sourcing. Having a large network, we can also find you the right Chinese supplier.
✔ We will pick up your merchandise at various pick-up points.
✔ Perform pre-packing inspection to ensure your products are in compliance (QC link).
✔ Provide you with customized packaging and labeling (item packaging and labeling link).
✔ Consolidate your packages.
✔ Ship them to your desired destination (logistics link).
For more information, please visit: (home page link)
RM China sourcing is your sourcing agent that can help you source and manufacture your products in China. We are a team of French-Chinese experts who work with e-tailers, such as amazon sellers, importers and other companies. If you have any questions about sourcing in China, please contact us at: Consolidation of your packages for a more profitable transport