What is consolidated or groupage cargo in simple words? Groupage transportation is both an effective and convenient option, allowing the client to optimize delivery costs, even if he is dealing with small quantities. These benefits are made possible by combining shipments from multiple customers into one vehicle. The term group transport refers to a type of transport that is becoming increasingly common in international trade. Shipments have the same or close place of arrival.
How does transportation consolidation occur?
The operation of combining things into one shipment is called consolidation. Performed by logisticians who transport by land (especially rail) and sea transport. It is important not to make mistakes in the selection of goods, as this affects their integrity and safety. Three stages:
- Goods Receipt Process: Consolidation occurs when incoming goods are separated and sorted for integration into unit shipments.
- Location inventory: stored at the place of dispatch from the moment they arrive at the warehouse.
- Pre-shipment operations: Items must be picked up from various containers and grouped into a single shipment. Orders are usually grouped by route or customer since they are usually loaded onto the same transport unit.
Groupage cargo is also called consolidated cargo. Consolidation of goods is a strategy aimed at optimizing warehouse space. The principle of group transportation applies not only to transportation. It also plays an important role in warehouses, especially distribution centers. There, the consolidation of goods from different origins makes it possible to optimize warehouse space and fulfill customer orders more efficiently. Within a warehouse, product consolidation work consists of grouping compatible ones.
Advantages of groupage transportation
Consolidated cargo has many advantages, such as:
- economical solution for any supply;
- fast delivery without delays;
- less risk of injury;
- reduction in the cost of packaging and placement in the car;
- reduction in insurance costs.
Kitting is actually the most cost-effective solution for all those small shipments, which means lower shipping costs.