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5 Major Ways Shippers Can Save on LTL Shipments: Part 4 — Consolidation

by LPS Insights, on October 12, 2016

Last week we kicked off our series on how shippers can save on LTL freight. We’re examining five major factors:

  1. Pricing
  2. Packaging
  3. Carrier selection
  4. Consolidation
  5. Technology


In this installment, we focus on the benefits of consolidation of LTL freight.


How to Consolidate your LTL Freight

For shippers, there are 3 main approaches where consolidation leads to significant LTL freight savings, according to Inbound Logistics: “Consolidate orders, combine divisions and facilities, and create a consortium program with other local companies.”



Consolidate Orders

Savings from load consolidation can surpass carrier discounts. Look for ways to build bigger LTL freight shipments by auditing your outbound and inbound freight. Chances are good you’ll find opportunities to consolidate your loads. And besides saving money, you’ll reap these benefits:

  • Increase productivity and efficiency
  • Lower your risks and insurance costs (fewer trucks on the road)
  • Lower carbon emissions


When you start consolidating your orders, you’ll have to change old habits from ordering fewer parts more often to ordering more parts less often.


Consolidate Operations

Sometimes companies operate more than one warehouse or shipping facility, which can lead to communication issues and needless duplication of functions. If your shipping operations are organized under a single person or department, you’ll have a 360° perspective of your shipping and logistics services and the ability to better consolidate orders and shipping. It’s also much more efficient working with carriers and suppliers when a single group is managing these functions for the entire enterprise.


Create a Consortium with Local Companies

Team up with other businesses in your area that are delivering to the same destinations. The objective is to build bigger loads, which would decrease your costs, and potentially even push your LTL freight to more efficient truckload (TL) rates. Larger shipments also reduce transit times and handling.


Stay with this series when we next examine how Technology can help you save on LTL freight in the final installment.

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