The pooling concept of shipping is all about the efficient use of resources. In the past, many different shipments would all be sent to the same geographic region on separate trucks. Today, we understand that we can improve on that. The main problem is what we call less-than-truckloads, or LTL. Traditional LTL shipments always cost more and are harder on the supply chain. LTL rates are higher because they use more fuel and require more vehicle resources.
How Does it Work?
Pool distribution services take those LTL shipments and combines them on fewer trucks. Then, the shipments are delivered to single source regional terminals called pool points. The products are sorted and segregated according to their own destinations by the pool operators. Finally, the goods are loaded onto local delivery trucks to be taken to their final delivery locations. The pooling concept has embraced by many industries as a more efficient use of transportation resources.
Benefits of Pool Distribution
- Cost Savings : Shipping by the truckload is almost always going to be less expensive than small or LTL shipments. Ride-sharing with other shipments and products allows you to benefit from being willing to work together. LTL carrier trucking companies usually give discounts to high volume companies. If you have small shipments, then you’ll be losing money with services like that. By optimizing the means by which we manage inventory, we are able to cut costs and provide cost-effective rates for our clients.
- Transit Time : Relying on the long-haul method of trucking reduces travel time for your deliveries. We can deliver better delivery times by using the pooling method. Consolidating several shipments on one truck for the trek across the country is a more consistent and reliable form of transportation. Plus, once the separated shipments are on the smaller local trucks, you will receive better delivery times than a truck making several stops before they get to you.
- Better Service : The pool distribution method is a more secure way of managing your supply chain. Reducing the number of overall shipments is always going to be simpler and more straightforward to operate. Freight consolidation also adds another checkpoint for our services to check and control your products. This checkpoint allows us to double-check for damaged or missing goods before delivery. Combining your shipments this way also means there is less handling of the freight. It can reduce the chance for product claims and losses for the retailer.
- Carbon Footprint : One obvious benefit of using fewer trucks is fewer carbon emissions. Centralizing your shipments means we can be more efficient with our resources. It also reduces the wear and tear on our equipment. Fewer trucks on the road means less fuel is being used as well. We can save money and reduce the damage to the environment at the same time.