In today’s economy, businesses are under increasing pressure to streamline their supply chains and reduce operational costs. Studies show that freight costs account for nearly 10% of a company’s revenue on average, with inefficient logistics contributing significantly to unnecessary expenses. Additionally, research by the Council of Supply Chain Management Professionals (CSCMP) reveals that transportation costs rose by 21.7% in the past year, emphasizing the need for smarter, more cost-effective solutions.
Consolidation programs have emerged as a key strategy for businesses aiming to optimize their supply chains. By grouping smaller shipments into larger, more economical loads, companies can reduce shipping expenses, minimize environmental impact, and improve delivery efficiency. Whether you’re managing inbound freight for a large organization or ensuring your products reach customers on time, consolidation programs offer a way to save money without compromising on service quality.
In the following sections, we’ll cover how consolidation programs, like those offered by Mactrans, play a vital role in reducing transportation costs and ensuring seamless logistics for businesses of all sizes.
How Consolidation Programs Can Save You Money
Behind every successful shopping experience, lies an extensive back-end experience brought to life by a team of individuals dedicated to envisioning, implementing, and maintaining a seamless fulfillment process. Every time a customer clicks ‘Confirm Order’, or a company places an inbound order, the first domino falls, initiating a cascade of the backend infrastructure that ensures those selected goods make it to their destination in a quick, efficient fashion. But oftentimes, this isn’t simply a matter of getting freight from point A to point B, but also how those goods are consolidated to allow for a more cost-effective supply chain. One of the ways we frequently help our customers reduce their spending is through our consolidation program.
Of course, as a consumer, you may not be interested in knowing ‘how the sausage is made’, so to speak. Consumers often judge their experience not on the details of behind-the-scenes logistics, but the more obvious markers of success: product quality, shipment speed, and customer service. But for brands and suppliers, the backend recipe is paramount to continued success. In many ways, the logistical elements of freight transportation and consolidation can make or break a business, and, as any transportation expert knows, establishing a seamless supply chain is no small task.
Especially when it comes to inbound freight for larger companies who rely on the frequent shipment of goods to their location.
It is for precisely this reason, that so many brands outsource their transportation needs to a Third-Party Logistics (3PL) service provider. Dedicated 3PL companies, like Mactrans, work directly with clients to find the most appropriate carrier, mode, and shipping method to suit their unique needs. It is our job to get our clients’ products from point A to point B using the best route and the best carriers, for the best price.
Canadian Domestic consolidation programs are most cost-effective when the freight is traveling long distances. The most common programs start in central Canada and move either east or west. For example, we can consolidate LTL freight for multiple vendors in Toronto and then move truckloads by road, rail, and even marine (for Newfoundland) across the country. With appropriate freight volumes, smart scheduling, and fewer carries, we can save our clients a significant amount of money (and headaches) across their transportation supply chain.
For international shipments, we also leverage our consolidated cross-border programs. Instead of paying for numerous LTL or courier shipments, customers benefit from reduced costs by consolidating orders. Moreover, that shipment is treated as one consolidated customs entry which helps to significantly reduce customs brokerage fees.
We also offer a cloud-based transportation management system (TMS) which is designed specifically for the consolidation needs of our clients. Providing full visibility across the supply chain, our TMS allows us to receive orders electronically and create customized reports to provide customers with real-time updates. We can also leverage these reports to analyze their shipping patterns and identify opportunities for improvement. And that is precisely ‘how the sausage is made’ in the realm of transportation and logistics.
At Mactrans Logistics, transportation management is not just our job, it’s our specialty. We will work closely with your vendors, logistics department and buyers to streamline and transform your transportation supply chain using every available tool in our ever-growing arsenal of expertise. Read more about our freight consolidation services.
