BUYER CONSOLIDATION

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LCL shipments are cost efficient in that you only pay for what you need, but importing using multiple LCL shipments can increase your international freight forwarding costs quite substantially.

TOO MANY LCL SHIPMENTS

As an import or logistics manager, do you find yourself authorising numerous LCL shipments each month? Frequent, small international inbound or one off shipments can quickly multiply your international freight forwarding costs. Additionally, too many LCL shipments can create inefficiencies in the warehouse. At the destination warehouses and distributions centres (DCs), excessive freight handling adds to inventory processing and holding costs. Even if you import items that are sub-optimal in size or dimension, or infrequently manage inbound shipments, you may be able to benefit by container load consolidations.

THE SOLUTION: BUYER'S CONSOLIDATION SERVICES

Buyer’s consolidation is a term that incorporates a few different meanings. It can mean to consolidate several smaller shipments from your suppliers close to the origin so that a full container can be packed and shipped which can be done as a one off, or more likely on a weekly or monthly schedule. This type of buyer’s consolidation can also be organised once a pre-determined quantity of products have been received. This type of solution works for companies that are importing to a centralised warehouse destination.

BENEFITS AND DOWNSIDES OF BUYER'S CONSOLIDATION

Creating more responsive supply chains with buyer’s consolidations at or near origin can bring many benefits including less LCL shipments and reduced transportation costs and improved container utilisation with increased savings from consolidated shipments. When looking at an offshore solutions, are also downsides to consider which may include longer lead times and a lack of technology solutions at the overseas warehouse. Determining the estimated saving and efficiencies for switching to buyer’s consolidation requires a detailed analyses of your supply chain and a focused look at the challenges verse the benefits, so ensure you work with a 3PL provider that you trust. Many companies are realising cost efficiencies by using buyer’s consolidation and we encourage you to continue your investigations to see if this solution will assist your business. If we can assist you with your investigations, contact us for a complementary consultation.