How the process of freight consolidation is carried out 

In an increasingly globalized environment, the number of shipments from the warehouse to other logistics centers has multiplied.

In an increasingly globalized environment, the number of shipments from the warehouse to other logistics centers has multiplied. 

This is precisely why the operations in the process of the dispatch of merchandise are significantly more complex. 

With this article, our aim is to lay out how strategy can improve your logistics operations. 

What is freight consolidation? 

It is also known as “Less than a truck load” (LTL), “Less than container load” (LCL) or just “groupage”. It is a logistics operation in which multiple separate orders are grouped into one larger transport unit to avoid fragmented shipments. 

The alternative means that shipments of less than 5 tons can be exported or dispatched nationally, without the need to contract a container or a whole truck. 

According to customs laws in Mexico, the characteristic feature of consolidated freight is that the merchandise is protected by the same transport document, despite having different origins and destinations. 

Stages of freight consolidation 

Each stage of freight consolidation is key to achieving an efficient and successful process in the field of logistics and transport. 

• Admission and verification. At this point, the quality, quantity, as well as the documents associated with each shipment, are reviewed. It is a fundamental step to guarantee that all the products comply with the required standards and that the information is exact and complete. 
• Classification y organization. After checking the products, the freight is grouped according to factors like final destination, their compatibility and the specific regulations for each type. This stage is key in order to maximize the available space in the means of transport used, such as containers or trucks. 
• Packaging and stowage. The idea is to use appropriate techniques and materials to guarantee safety and integrity during the transport of the product. Of course, the proper distribution and organization of the goods is essential to make the most of the capacity of the means of transport. 
• Labeling and documentation. This means that each consolidated shipment is marked for its identification and tracking during the entire logistics process. In addition, documents such as bills of lading and invoices are generated to comply with legal and customs requirements. 
• Transport and tracking. During this process, safety measures are activated to protect the products. Continuous monitoring of the state and location of the freight is also carried out. The aim is to minimize the risk of damage or loss and guarantee successful delivery. 
• Final distribution and deconsolidation. After the consolidated freight reaches its final destination, it is dispatched to clients or warehouses. At this stage, deconsolidation is carried out. This involves separating the individual consignments making up the consolidated freight. 

Advantages of cargo consolidation for trade 

By availing of freight consolidation, companies enjoy a series of significant benefits: 

• Cost reduction. Combining different consignments in just one raises the capacity of the means of transport, which allows you to make the most of the available space and, of course, lower transport expenses. 
• Resource efficiency. As already mentioned, by consolidating freight, less space is needed to store, implying additional savings for companies. 

At times, shippers only use half or two-thirds of a container but are required to pay for the entire space. However, with this process, they can avail of preferential rates. 

• Strengthening the supply chain. Combining several loads in one leads to lower transit times and faster delivery of products. 

In addition, by working with suppliers and clients, the level of collaboration and coordination in the supply chain is raised, resulting in more precise planning and quicker response. 

• Greater safety. It is a fact that products can be damaged during their transport from one place to another. Having your freight consolidated means that it will be in transported in fewer trucks, which lowers the possibility of it having an accident. 

What’s more, there is greater reliability. This is due to the fact that there is less handling of products, and there is less risk of losing something or of goods being delivered to the wrong place. 

• Time control. Because the logistics operation offers quicker transport times, thus improving planning and you can work according to a secure schedule. 
• Tracking the freight. There are many tracking freight systems which alert to the existence of a problem with the freight. 
• Strategic associations. There is also the option to set up better relations with other companies using consolidated shipments, which helps lower costs and create more efficient loads. 
• Satisfied clients. By having quicker transport times, the products can be delivered in less time and, consequently, the clients are happier. 

How is freight deconsolidation carried out 

The deconsolidation of freight is the counterpart of consolidation. In other words, when the container reaches the destination, the units are unbundled, verified and sent to their finishing line. 

To complete this stage, a series of steps must be followed to guarantee the successful delivery of the products: 

• Reception. At this point, the freight must be reviewed and registered to start the process of separation and distribution. 
• Inspection and quality control. The aim is to check the state of the products and their labels in order to verify that everything is in optimum condition. 
• Unbundling. At this stage, the products that belong to each individual load are unbundled. An exact identification system is essential to avoid confusion and ensure that each load is issued correctly. 
• Organization and classification. This implies grouping the products that are to be sent to the same place or that share similar characteristics in order to facilitate their subsequent distribution and delivery to the recipients.
• Labeling and documentation. After each individual unstuffed cargo, it is identified with the recipient’s name, the delivery address and any other necessary piece of data. In addition, the bills of lading and invoices are generated to support the processing of the load. 
• Distribution. It is the last stage in deconsolidation and involves the distribution of the individual loads to their final recipients or to the warehouses. The key is to plan the most efficient route and coordinate the means of transport for their delivery. 

Make a consolidated shipment with KENSA Logistics 

If you need to make a reliable and efficient consolidated freight shipment, KENSA Logistics is your best option, because we are known for offering integral logistics solutions to your demands. 

Our team of experts is trained to help you every step of the way, from the reception of the individual loads to their final delivery. 

Conclusion 

As you know, the process of freight consolidation is a logistics strategy offering numerous benefits for companies. 

This means that, by combining multiple individual loads in just one, you can optimize resources, lower costs and boost efficiency in the supply chain. 

If your aim is to improve logistics processes and maximize the benefits of freight consolidation, do not hesitate to ask for the support of experts. 

KENSA Logistics is synonymous with experience and commitment to excellence.