SHIPMENT CONSOLIDATION

  • Multi-stop routing to same region reduced overall cost.

  • Out of route mile and stop-off expense more than offset by savings on loading time, truck expense and BOL expense savings.

Shipment consolidation may be considered when partial shipments to along a route may be combined to save overall logistics costs.  In this example:

  • Shipments to two customers in the same geographic region are scheduled to ship and deliver within two days of one another.  Total cost of logistics is $2670

    • $2550 in truck cost - Shipment A has a cost of $1200 (800 miles x$1.50/mile) Shipment B has a cost of $1350 (900 miles x $1.50/mile)

    • $120 in locating, scheduling, cutting BOL’s, loading and unloading two trucks ($60/truck)

  • The two loads are consolidated into one 34,000lb shipment.  Total cost of logistics is $1660

    • $1500 in truck cost (1000 miles x $1.50/mile – including out or route miles)

    • $100 to pay the truck driver for an additional stop

    • $60 to locate, schedule, cut a single BOL, load and unload one truck

$1010 - TOTAL LOGISTICS COST SAVINGS