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
