Freight deconsolidation is a key element for anyone who wants to expand their ecommerce business. It is the act of breaking down single or multiple shipments, particularly that of sea containers, into several smaller shipments. From here, these smaller shipment can then be directly shipped to your customers.
Why should you consider this for your business? Read on.
Online shopping and the demand for faster freight delivery
Do you know that 2 in 5 or 40% of online shoppers say they couldn’t live without online shopping.
You may say that’s not possible. But online shopping and e-commerce is becoming the norm and here to stay for good.
Read more about faster freight delivery sought after for 2017 in this article.
With this in mind, it’s best to look for a shipping option that will allow you to move your goods in a cost efficient fashion – freight deconsolidation.
Types of purchased online goods
Adam Leila, a seniour analysist at comScore said in an email these lines:
“The apparel category is experiencing faster growth than computers, largely due to buying on mobile. M-commerce is where most of the digital commerce growth is happening in retail overall, and people are more likely to purchase less expensive, less complex products on mobile (e.g. apparel) than they are to buy computer products.”
See the report from Big Commerce as illustrated in the images below:
Online shopping data for clothing, shoes and accessories
Online shopping data for computer and electronics
Online shopping data for beauty items
Online shopping data for books, movies and music shop
Online shopping data for flowers and gifts
So how will you deal with the massive growing demand for online item delivery?
You’ll need a reliable and efficient freight forwarder to assist you with the movement of these items.
The rise of ecommerce and the need for freight deconsolidation services
On September 2015, The United States Census Bureau reported that $358 billion worth of goods arrived at its ports from China alone.
From these ports, where do you think these items will go to?
- Warehouse
- Store
- Customer
You’re probably right! All of these are potential destinations for these imported items. But if you are into e-commerce, wouldn’t it be better if these goods can go straight to your customers rather than to the warehouse, to the store, then the customer?
It would most definitely save you heaps of time and give your business additional savings with the transportation cost.
Traditional distribution scenario
Let’s say you are importing items into the Port of Long Beach. However, you have your distribution center in Dallas and vast number of customers in Denver and Salt Lake City. How will you deliver your goods to these customers?
In a traditional distribution method, all of the items that will land at the Port of Long Beach has to travel to Dallas, you distribution center. From there, it will have to be deconsolidated so it can go to your customers in Denver and Salt Lake City.
What would that mean?
It mean having to cross the region twice, getting billed twice on your freight, and delivering your items slower than the competition.
Is this something you are willing to risk for?
Distribution via direct to customer (DC) by pass method
Deconsolidation is the act of breaking down a single shipment or multiple large ones (such as an ocean container) into several smaller shipments. Included in this freight option is the timing and organizing of your for delivery.
Thus, rather than crossing the region twice just to have your items delivered to Denver and Salt Lake City it will be following this route from the Port of Long Beach:
Rather than going back to your distribution Center in Dallas, items will be deconsolidated at a deconsolidation center near the Port of Long Beach. From here, it will be sorted and directly sent to your customers stores. This reduces redundant transportation while speeding up your delivery and minimising your transport cost.
Additional benefits of freight deconsolidation to e-commerce businesses
Now that the benefits of consolidation and deconsolidation has been properly illustrated in the scenario above, let us further explore the other advantages consolidation and deconsolidation via Freight Forwarder Quote Online (FFQO) can bring to your business.
Reduced transportation costs
Reduce your transportation costs by eliminating the cross country just to deconsolidate or consolidate your goods. This leads to more efficiency on your domestic inland transportation thus resulting to a reduced transportation cost.
Improved total cycle times
Eliminate the need for safety stock in your distribution center and retail stores. Let us manage the flow of your import merchandise and cost efficiently have an extra warehouse for these needs at an affordable rate.
Consider us your business partner as we integrate our workflows with yours to save re-handling time and minimise points of distribution.
Increased flexibility
We provide you increased visibility leading to better flexibility of your goods. Thus, you can easily postpone your final allocations from when the purchase order is loaded in the ocean container at origin, to a point where it does arrive at the port of entry.
Do you need help in better handling customer demands, especially during the peak season. Send us a message, today.
Retailer compliance
Worried about bar code labelling, delivery routing compliance, EDI messaging, ship window management and other quality assurance services?
Leave this to us. We help you avoid costly chargebacks and properly manage your retailer compliance guidelines to ensure you adhere to all the requirements. Talk to us, today.
Faster delivery and competitive rates to your customers
Ultimately, the real winner with all of these is your customer. With transportation costs cut, total cycle times improved and costly chargeback eliminated, your customer will only have smiles on their faces.
Why?
That is because they will never have to wait that long before their ordered goods arrival. FFQO can distribute your goods anywhere in the USA through our truck and rail partners. Get your free quote, today.
