Countless businesses are seeking ways to optimize their shipping and distribution. One of them is tapping into the benefits of pool distribution. First, you should know a few details about this shipping method, like how it works, when it is ideal, who should use it, etc.
Elder Logistics Inc. has got you covered. Keep reading to understand how pool distribution can positively impact your business operations.
What Is Pool Distribution?
Pool distribution allows retailers’ orders for a given market to be shipped as one truckload into a cross-dock facility for final delivery to stores. With traditional less-than-truckload shipping, the retailer must ship each order. Here at Elder Logistics Inc., we understand the importance of lowering costs while optimizing your delivery strategies. That’s why Pool distribution is an excellent way to save money and improve efficiency.
Unlike traditional trucking, which involves the direct shipment of products from the shipper to the retailer, pool distribution ships orders to regional depots using consolidated trucks. Then, the truck is offloaded, sorted, and arranged by the consignee. After that, local trucks are loaded with certain goods and sent to their final destinations in retail stores.
Elder Logistics can be a well-versed and valuable partner in your distribution strategy; we provide transportation, distribution, and packaging to eliminate added costs from other companies, simplifying the entire process from beginning to end.
Using pool distribution simplifies price comparisons by doing away with complicated formulas. Distribution costs are generally based on miles and weight. Not only does pool distribution make things simpler, but when you partner with us, you can track shipments easier, and delivery is typically quicker because fewer stops occur en route.
Pool Distribution and LTL Trucking
Pool distribution is a shipping/distribution method that combines multiple shipments into larger shipments. This strategy is quite similar to LTL shipping. However, a few key differences have established pool distribution as its solution.
LTL usually receives the best rates for high-volume shipments. If you’re using LTL for small-volume shipments, you might lose more money than you save. When using pool distribution, you “pool” shipments into a single load.
When it comes to LTL, you pay for the portion of the trailer you use instead of the whole thing. Other companies rent the remaining space. Pool distribution is known for improved shipment visibility and high on-time delivery percentages.
What Type of Businesses Can Benefit From Pool Distribution?
Various industries can benefit from pooling their shipments, and it is a critical element of the retail sector. Here are a few examples of industries that use and could benefit from using pool distribution:
- Valuable goods
- Automotive parts/equipment
- Industrial equipment/products
- Medical equipment/goods
- Packaging materials
Would Your Business Benefit From Pool Distribution?
Here are a few signs that pooling shipments may be a good choice for your company.
You’re Using LTL
If your business regularly uses LTL for shipments, then there is a good chance pool distribution may also be suitable for your needs.
Many LTL carriers have frequent stops en route to their final location, impacting delivery time.
On the other hand, pool shipments require minimal stops since they are all making their way to the same geographical area. You can also set your delivery time and day, ensuring enough labor is available on the delivery day so you don’t have to worry about falling off schedule.
Better Customer Service
When you work with Elder Logistics and decide to use pool distribution, tracking shipments is simple. Fewer stops mean less complicated deliveries, and it also means faster deliveries. In addition, you’ll continuously have updated shipment information from when your package departs to when it’s dropped off at its final destination.
Reduce Your Carbon Footprint
You will only need so many trucks on the road when you pool your shipments. Your customers, and the planet with thank you!
Reduce Distribution Costs
Using a cross-dock facility as part of the pool network can help retailers reduce the overhead costs of a distribution center. While preparing for the final delivery, the pool distribution shipment is offloaded at a cross-dock facility when it arrives. The goods are sorted, palletized, and labeled based on store location; then, they are all delivered.
With Elder Logistics, these features all come standard with our fleet. Now that you know more about pool distribution, reach out to our skilled and professional team for a quote today!