What is the consolidation?
Consolidation as a process is spoken of in logistics when goods and shipments are bundled or reorganized. The goal behind this process is always to be able to organize both the transport and storage of these goods as uniformly as possible. This should save costs and time and increase efficiency.
In transportation, consolidation means combining several individual loads into one consolidated load. Thus, shipments from multiple customers are packed together on one truck and treated as a single shipment.
Consolidation can provide some benefits:
- Lower operating costs
- Better quality service
- Better utilization of space (during transport and in the warehouse)
What is the difference between consolidation and picking?
In warehouse logistics, the combination of different parts is called picking. However, it differs from consolidation, because here the goal is not standardization, but the exact composition of a shipment according to customer requirements.