Save More With Consolidated Shipping

Posted by Marian

If you have never tried consolidated shipping on orders, then you’re lagging in terms of saving on transportation or delivery costs.

Behind every successful shopping experience lies an extensive back-end mechanism brought to life by a team of individuals dedicated to envisioning, implementing, and maintaining a seamless fulfillment process.

Every time a customer clicks ‘Confirm Order’ or a company places an inbound order, the first domino falls, initiating a cascade of the back-end infrastructure that ensures those selected goods make it to their destination in a quick, efficient fashion.

But often, this isn’t simply a matter of getting freight from point A to point B, but also how those goods are consolidated to allow for a more cost-effective supply chain. One of the ways we frequently help our customers reduce their spending is through our consolidation program.

What is Consolidated Shipping?

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Consolidated shipping, in simple terms, is the process of shipping several individual orders together. Orders meant to be shipped to the same destination are grouped and shipped together to save costs and time.

The modern, eco-friendly, and budget-conscious consumer demands speedy delivery at a great price with minimal environmental impact. As an e-commerce retailer, you should be looking for solutions that help you win more customers.

From this perspective, consolidated shipping is a win-win. This shipping style helps save on packaging and shipping costs, is more sustainable than other solutions, and meets customers’ delivery expectations.

Optimize Customer Fulfillment Experience

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Consolidated shipping may seem like a lot of work, but it’s often worth the effort if you ship in high volumes. When implemented well, consolidating orders can save you money and help you optimize your fulfillment processes.

The net effect is that you’ll be able to give your buyers a positive fulfillment experience.

Instead of going through the hassle of organizing different shipping solutions for each parcel, you can put all individual packages in the same purchase order and send them together. Then, you can send an Advanced Shipping Notice (ASN) to the buyer to inform them of their order consolidation.

Your parcels will be combined with parcels from other brands and companies to be sent to their destination country; once they arrive, they will be passed onto local couriers for last-mile delivery.

Consolidated shipping is helpful for e-commerce retailers who often ship large volumes to a particular country; they can use the delivery method to save on shipping costs, reduce the use of packing resources, prevent product damage, and offer an overall better experience to their customers.

Top Advantages of Consolidated Shipping

The benefits of consolidated shipping can be massive; if done correctly, it can be a win-win situation for retailers, courier companies, and end customers. All the players in the order fulfillment process benefit in the following ways.

Save on Shipping Costs

Consolidated shipping means that you use fewer packaging materials and fewer boxes, which reduces both the dimensional weight and the actual weight of your shipments. Consolidating orders also helps to reduce the handling fees per package, further reducing the shipping cost.

Reduced Risks of Damage

When your shipments are consolidated, each item will require less handling and have less space to slide around while on transit, lowering the risk of damage.

Speedy Deliveries

By consolidating orders, retailers and suppliers can optimize supply chain efficiencies, which means that customers can receive their orders quickly and safely.

Eco-Friendly

Consolidated shipping means you can use fewer packaging materials such as boxes, foam peanuts, and tape. This helps to reduce waste and environmental impact. Also, there is better cube utilization on trucks as more units are shipped in fewer cartons. That means vehicles require less fuel to ship more products, reducing carbon emissions in the environment.

Enhanced Quality Control

Consolidated shipping enables you to detect problems with your order or products before they leave the warehouse and put quality control measures in place before your goods are shipped.

Consolidating Multiple Orders

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Consolidated shipping is a collaborative process involving business partners, distribution companies, and retailers. You also need a trusted freight forwarder or logistics company Zip Logistics to handle the consolidation process.

A company offering shipping consolidation services receives the items that you want to ship, checks through your order to ensure that everything is in order, takes the goods out of their packaging (but leaving them in the retail packaging), and repackages them into a single box that is just big enough to hold them. Here are the steps to ensure that consolidation of orders is successful:

  • The entire consolidation process should be determined from the start. Every party should agree on the consolidation process.
  • Assess the consolidation structure and your supply chain. This step entails reviewing the business and technical areas and how the system differs from other order or shipment types.
  • Prepares to execute. The process involves choosing test trading partners, sharing mapping guides, and creating test transactions.
  • Check your readiness. At this stage, you’ll want to test the transactions, resolve issues, and review any changes in the process.
  • Test Initial shipments. In this step, test transactions are audited and tested again for compliance and accuracy.
  • Implementation begins. This entails deciding whether to go ahead, notifying trading partners of consolidation, and assessing the benefits of the whole process.

If you’re looking to consolidate your shipment and you don’t know how to start, Zip Logistics can give you. We can provide bespoke shipping consolidations services that will help you reduce shipping costs and product damages.

Order Consolidation Vs. Direct Injection

A direct injection is a form of order consolidation. Like all other consolidated shipping services, direct injection involves individuals grouping shipments together to be sent to the destination country before being passed on to a local postal service for last-mile delivery.

The main benefit of direct injection over other consolidation methods is that you can access duty exemptions. In the US, the Section 321 exemption means that shipments valued at under $800 and arrive in the country through direct injection will not have duties levied on them.

  • Direct injection shipping always involves goods being shipped by air as bulk cargo; this doesn’t always apply to other consolidated shipments
  • Goods shipped by direct injection are required to clear customs electronically; this doesn’t necessarily apply in other consolidated shipping methods.
  • For shipments made by direct injection, the customer is the “importer of record” instead of the business; for consolidated shipping, the company can still be the “importer of record.”

What Can Consolidated Shipping Do for My Business?

Consolidated shipping can help you navigate carrier rate, dimensional pricing rules, handling fees, and other shipping expenses such as customs duties.

Zip Logistics can streamline your whole shipping process. But, more importantly, we are highly experienced in order consolidation and direct injection and can offer plenty of advice and expertise if you want to use this method of fulfillment.

When you use the right tools, you can quickly implement consolidated shipping for your business and begin to reap all the benefits of shipping multiple orders together. This will have a ripple effect on your buyers because you will offer them a positive shopping experience with lower shipping fees.

Consumers often judge their experience not on the details of behind-the-scenes logistics but the more obvious markers of success:

  • product quality
  • shipment speed
  • customer service.

But for brands and suppliers, the backend recipe is paramount to continued success. That is where Zip Logistics comes in to save the day!

In many ways, the logistical elements of freight transportation and consolidation can make or break a business. As any transportation expert knows, establishing a seamless supply chain is no small task, especially when it comes to inbound freight for larger companies who rely on the frequent shipment of goods to their location.

We Get Your Business Moving!

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For precisely this reason, so many brands outsource their transportation needs to a freight forwarding company or Third-Party Logistics (3PL) service provider. At Zip Logistics, we work directly with clients to find the most appropriate carrier, mode, and shipping method to suit their unique needs.

Our job is to get our clients’ products from point A to point B using the best route and carriers for the best price.

  • We provide the most cost-effective when the freight is traveling long distances.  With appropriate freight volumes, intelligent scheduling, and fewer carries, we can save our clients a significant amount of money (and headaches) across their transportation supply chain.
  • For international shipments, we also leverage our consolidated cross-border programs. Instead of paying for numerous LTL or courier shipments, customers benefit from reduced costs by consolidating orders. Moreover, that shipment is treated as one consolidated customs entry, which helps to minimize customs brokerage fees significantly.
  • We also offer a cloud-based transportation management system (TMS) designed specifically for our clients’ consolidation needs. Our TMS allows us to receive orders electronically and create customized reports to provide customers with real-time updates, providing complete visibility across the supply chain.

We can also leverage these reports to analyze their shipping patterns and identify opportunities for improvement. And that is precisely how Zip Logistics makes it happen for your business in the realm of transportation and logistics.

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