To ensure a flawless logistics chain and to meet the demand for goods and merchandise at several locations, a multi-level logistics system is usually required. In such a system, the so-called break bulk point stands for a point in the chain where large freight or goods shipments are broken down and divided into several, smaller partial or individual deliveries. Typically, such concepts are found within freight systems based on a multimodal or intermodal system.
Difference Break Bulk Point versus Consolidation Point
The logistics concept looks different when the entire process is reversed and there is a point within the chain where individual partial deliveries are combined and assembled into a larger freight unit. At the so-called consolidation point, a concentration point is created, i.e. the flow of supplies is interrupted and, if necessary, a new concentration point is created. additional storage capacity or organizational steps are necessary.
Important: In some situations, it may make sense to use both methods (Break Bulk Point and Consolidation Point), or aspects of both approaches are often used in the supply chain. In this process, a certain quantity of individual deliveries is first transported to the consolidation point, where they are grouped together and transported as a consolidated load to the break bulk point - where they are then split up again into specific partial deliveries.
A classic example of the break pulk point is B2B or B2C parcel shipping. This is because individual parcel deliveries are stored in special interim warehouses, divided up according to their destination and then shipped to the final distribution centers.
