What is Order Consolidation?
Significance of Order Consolidation
Order consolidation, the last stage that takes place in the warehouse before merchandise is distributed,
has a direct impact on customer satisfaction. One of the priorities of any company is to ensure the
correct consolidation and distribution of orders to guarantee deliveries without delays or errors.
In their warehouses, companies usually set up a consolidation area where the requested products are
grouped to form orders and facilitate their distribution to customers. The consolidation operation is
more complex when the orders are made up of multiple references from various warehouse areas or
include loose or small items.
What is Order consolidation?
Order consolidation is a logistics process that consists of grouping goods from multiple suppliers to
create a single cargo unit to be shipped.
The merchandise consolidation process is usually carried out in an area designated for this purpose or,
directly, in a consolidation warehouse. In warehouses where full pallets are dispatched, the
merchandise is usually classified in front of the loading docks by orders or transport routes.
Order consolidation has gained momentum with the rise of e-commerce, as free or low-cost
shipping has become a common standard in the purchasing process. Order consolidation is also an
operation that logistics operators can use, which can install consolidation areas or even warehouses in
their distribution centers to compose the orders that will later be distributed to their customers.
The main objective of this logistics operation is to reduce the transport and delivery costs of each order
by reducing unnecessary trips: the union of different loads in a single shipment facilitates the complete
loading of the truck, in addition to dividing the cost of transport by the number of orders.
Advantages of order consolidation
Order consolidation is an operation that aims to reduce shipping costs related to the delivery of these
orders and offer an efficient logistics service.
Companies that carry out order consolidation can benefit from the following advantages:
Reduction of shipping costs. Order consolidation allows you to limit both shipping times and
costs, making delivery faster and cheaper for the end customer.
Efficient management of loading docks. Order consolidation not only ensures shipments with
full carriers but also eliminates the risk of bottlenecks at loading docks and warehouse yard
management. The consolidation areas close to the loading docks facilitate the handling of
merchandise and agility in the expedition of orders.
Increased cargo security. Having the articles packaged and grouped inside the truck enables
safer transport because the products are grouped into larger load units and full truckloads
avoid the movement of merchandise during the journey.
Less environmental impact. Taking advantage of the load capacity of trucks eliminates
unnecessary trips and, therefore, reduces polluting gas emissions.
In short, order consolidation streamlines product distribution in the warehouse: it limits the impact of
delivery costs per order reduces the company’s environmental footprint and promotes more efficient
loading dock management.
At Sooner Logistics– A 3rd party logistics company in California, we take care of all your logistics and warehousing needs with excellence. Talk to us
today and we will be glad to handle your business needs perfectly.