Increase Profit Margins with Pool Distribution Logistics

Jan 21, 2022 | Retail Pool Distribution

Did you know there’s a strategy behind lowering your shipping costs? While truckload and LTL shipments are popular transportation options, you could spend more money on transportation if you don’t monitor your freight needs. Pool distribution logistics combines the benefits of truckload shipments with final mile services for local and regional deliveries, and it could cost less than LTL.

This article will explain when to use pool distribution logistics, ways it can increase your profit margins, and how you can benefit from the Service Express difference.  

What is Retail Pool Distribution?

Retail pool distribution transportation allows you to combine shipments going to a specific region on the same truck. Then when the products arrive at the pool point, they are loaded on individual short-haul delivery vehicles.

Unlike LTL, you don’t share the load with other shipments; only your freight is on the trailer. Which might lead you to the question, “How do I know when to use LTL and when to use pool distribution?”

When to Use Pool Distribution Logistics Over LTL?

The answer? It depends on the size and the circumstances of the order. You need to have enough freight volume going to the same geographical area to fill a truck. If not, LTL might be the more affordable option. 

Use pool distribution shipping if you have:

  • Time-sensitive deliveries 
  • Fragile freight 
  • A specific delivery schedule that must be followed  
  • High-frequency shipments 

Use LTL shipping if you have:

  • Less than ten pallets of freight 
  • Sturdy freight 
  • Delivery flexibility 

It’s essential that you don’t make that decision on your own. Instead, work with a knowledgeable logistics company that can review your order to determine where you can save the most money.  Additionally, it’s a common misconception that a small company can’t use pool distribution services, but that’s not true. At Service Express, we work with companies of all sizes, so you can still benefit from pool distribution advantages. 

3 Ways Pool Distribution Increases Your Profit Margins 

If you choose to ship using pool distribution, here are three ways it will increase your profit margins. 

#1 Faster Transit Times

Since your packages are the only ones on the trailer, there are no additional stops on route (except for driver breaks and fuel). This will significantly lower your shipment time so it’ll arrive at the customer faster, which will increase customer satisfaction. 

Savings: Customer Satisfaction = Repeat Orders

#2 Improved Service and Tracking 

Unlike LTL shipments, tracking information is more reliable. If you have a concern, you can contact your shipping company. If there’s a problem, it can be corrected quickly.

Savings: Supply Chain Visibility = Less Errors

#3 Control Over Delivery Date and Time

You’ll be able to monitor your freight’s location and select the delivery date and time, if needed, to ensure it arrives at the best time. This benefit works well for shipments going to retail locations since it keeps your shelves stocked with products. 

Savings: Stocked Shelves = More Sales  

The Service Express Difference on Retail Pool Distribution 

Service Express is a full-service logistics and transportation provider based in Baltimore, Maryland. Our company’s principles are centered on providing honest, quick, and reliable services. When you choose to partner with us for your pool distribution logistics, you’ll review faster transit times, complete inventory visibility, and optimized routes. 

Learn more about our retail pool distribution.

If you’re ready to work with a company that values integrity, contact us or request a quote today!