Redwood Blog

Why Freight Consolidation Makes Sense

What is freight consolidation? Freight consolidation is the process of taking several smaller shipments and shipping them together for better freight costs, security, and service.

Why Freight Consolidation Makes Sense

What is freight consolidation?

While not a new solution, it is one that many shippers may not realize would be beneficial to them. By partnering with the right 3PL, shippers can leverage large multi-client transportation networks to take advantage of consolidation opportunities and cost reductions. Sophisticated 3PLs will have data visibility to freight dimensions, service requirements, and more to maximize the utilization of a carriers trailer and deliver you the best possible price.

Save Time & Money

From less damage claims to lower freight costs, freight consolidation can be a game changer for many companies. When a shipment undergoes modal conversion—such as switching from LTL to full truckload—you can typically save up to 12-25% based on your business model. But saving directly on shipping costs isn’t the only way freight consolidation lowers your freight spend. By converting small loads into full truckload, you also reduce the total number of transactions. With that, you’ll also see a reduction in paperwork, shipment preparation, and all of the other little things that add up to save you time and money. In addition, when LTL shipments are converted into a full truckload, there are less hands on the freight and less potential for damage.

A broker with partnerships with other large shippers in your area can not only provide all of the capacity you need, but also help you lower your freight spend by leveraging optimization opportunities across their existing freight management network. You may also see a reduction in transit time since your freight doesn’t have to go through multiple LTL stations.

Save the Earth

By reducing the total number of shipments and the total number of miles driven, you can reduce your carbon footprint and the impact on the environment. Seek out brokers that are committed to transporting freight in a cleaner, more sustainable way.

The Bottom Line

Freight consolidation is a great way to maximize efficiency, help the planet, and help your bottom line.