Consolidation and deconsolidation are two important parts of many supply chains that can greatly assist businesses to achieve higher order fulfilment rates, optimised economic order sizes and help control costs. However, to achieve these benefits, the planning should be robust with seamless execution. Smart businesses understand that the stakes are high when running consolidation and deconsolidation programs and there is a very real possibility of failure.
To avoid potential failure, smart businesses often engage experienced freight forwarders that have a demonstrated capability to consolidate and deconsolidate goods. Placed higher in the logistics value-chain, consolidation and deconsolidation operations are much more complex than simple freight forwarding such as moving full container load (FCL) or less than a container load (LCL) of sea freight or air freight. It requires a deep understanding of requirements, precise planning, agile operations, and innovative IT systems to support such operations. Professional and experienced freight forwarders have developed all this expertise over a period of time and can deliver results for their customers.
Consolidation/deconsolidation is a multi-step process and should be performed with near perfection at every node, across multiple transportation modes. To achieve this, handover processes at each change node should be extremely tight and fast at the same time, as changeover time can be sparse. Any mistakes made while carrying out the changeover can have huge implications on the order fulfilment rate and the associated costs. Smart businesses understand these intricacies and often choose to work with freight forwarders with years of experience in operating consolidation/deconsolidation programs. Expert freight forwarders have extensive experience in carrying out the necessary process checks and controls that are required to make your operation seamless.
Consolidation and deconsolidation are commonly offered as value-added services by innovative freight forwarders. These freight forwarding companies have cost structures that reflect the deployment of better systems and resources to manage the 3PL program. At the same time, they assist you to achieve higher order fulfilment rates which are likely to result in increased sales. Your decision to opt for consolidation/deconsolidation programs is a trade-off between the increased sales and the cost of opting for these programs. Due to the seriousness and sensitivity involved, experienced freight forwarders have highly experienced and expert resources to assist you in controlling the costs associated with the program.
Having your goods delivered on time is one of the most important logistics deliverables. Accurate goods delivery timelines enable you to determine the level of safety stock to be maintained in order to achieve your desired order fulfilment rates. This has a direct impact on inventory carrying costs. There is an increased possibility of missing delivery timelines while managing consolidation/deconsolidation processes due to the changeover process. It is important that your freight forwarder understands the implications and maintains the sanctity of product delivery timelines to assist you in keeping the safety stock and all associated costs low.
Cargo safely and securely
While managing the consolidation/deconsolidation programs, your goods will undergo multiple handlings. Throughout this process, it is likely that some of the goods’ packaging may suffer damages. If the sensitivity of handling goods through multiple touch points is not understood and carried out with the utmost care, product damages and consequential claims can take place. To ensure that there are no damages to goods’ packaging when carrying out multiple handling points, personnel involved in the process must be trained to handle goods in the correct manner. Expert Freight forwarders ideally have been carrying out consolidation/deconsolidation programs for many years and have imparted this training and sensitised their manpower to ensure the least amount of damage to the goods, through-out the logistics operation.
Supply chain visibility
Another important factor while managing consolidation/deconsolidation processes is to get visibility across all nodes wherever these processes are being carried out. Ideally, your freight forwarder is able to provide this visibility and deliver information in real time through being equipped with the latest IT systems. This information assists end-to-end logistics personnel to plan ahead and ensure that your logistics chain stays agile and responsive.
Smart businesses know that running consolidation/deconsolidation programs are complex and therefore, engaging an experienced freight forwarder to manage these programs is likely to assist in reducing costs, minimising damage, improve order fulfilment rates and customer satisfaction. All of which can lead to increased sales. Leading international freight forwarders, such as BCR, give you complete comfort with their knowledge and expertise in managing these programs, which assists you to control costs, meet timelines, minimise damage and achieve complete visibility across your logistics chain.
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For more than a century, BCR has continued to help small, medium and large businesses achieve an optimum logistics solution with warehousing and transportation, including air freight and sea freight services to and from the major ports including Brisbane, Sydney, Melbourne, Adelaide and Fremantle (Perth).