If you ordered groceries from your local market, you’d probably be shocked if they delivered each item one at a time. They’d start by placing your eggs in a bag, loading them in a delivery car, and driving them to your house. Then they’d put your apples in another sack and send those off to your home.
A delivery system like that would be … less than smart. But that’s very similar to what a lot of companies do with their shipments these days. When they have packages ready to go, they call a freight company and send them. It may be fast, but it’s also an expensive and highly inefficient way to transport your goods.
You can improve your efficiency and save money when you take advantage of parcel load pooling — the ingenious digital connection of distribution centers, delivery trucks, and customers.
What Is Parcel Load Pooling?
Parcel load pooling uses the fewest vehicles possible to ship freight to its destinations. It’s a complex process that requires the coordination of drivers and trucks, warehouses, and digital logistics software to maximize the space used in every delivery vehicle.
Oftentimes companies need to ship packages but don’t always have enough to fill an entire truck. So the transportation company will pick up their shipments and take them to a nearby warehouse. At the warehouse they’ll “pool” all the packages into fewer trucks, then send those pooled shipments to another warehouse closer to their destination, where the packages are then separated into smaller delivery trucks.
This type of delivery system optimizes shipments via a centralized, computer-based dispatch system that tracks every truck and every parcel from their origin to their final address.
The Benefits of Parcel Load Pooling
When freight transportation companies are able to consolidate shipments, everyone saves money. It’s more economical for shipping companies to utilize parcel load pooling because they’re able to maximize the use of their trucks and other resources.
Since it costs less for the freight companies, they’re able to provide reduced prices for their customers. They save on fuel, the need for fewer trucks and drivers, including all the costs associated with labor costs and vehicle maintenance, insurance, etc.
While parcel load pooling tends to benefit companies with higher-volume shipments the most, smaller businesses can also take advantage of it depending on the timing, location, and size of other shipments.
Use Service Express for Parcel Load Pooling
If you’ve ever shared an Uber ride, you already know you can save money by consolidating trips with other “packages” (in this case, you and the other passengers).
Service Express is able to offer even better cost savings with our parcel load pooling capabilities. We have the team, the resources, and the digital tools necessary to optimize all of your shipments, whether we delivery them directly or pool them with other shipments.
And you can always count on safe, accurate, and timely delivery. The Service Express team offers faster transit times, full inventory visibility, and optimized routes — all in an effort to save you money.
Discover if parcel load pooling is the right solution for your business. Work with us to find the best distribution strategy that will help you meet your goals.