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Consolidation service, a process of merging small shipments into one global shipment and reverse of it deconsolidation service refers to dispersal of one large shipment into a number of smaller shipments. It is an effective service to optimize distribution of your goods, focusing on the reduction of your warehouse inventory and fulfilling the demand of product from where it is. Consolidation service, usually known as containerized shipment means combining comparatively several smaller shipments into a full container load or a large shipment to avail of better freight rates. It is also referred to as groupage shipment. Different consolidation practices: Accounting: Combining assets, equity, liabilities and operating accounts of a parent firm and its subsidiaries into one financial statement. Banking: Paying off two or more old loans with a new loan. Law: Combining two actions, involving the same parties and the same issues, into one action on court orders. Consolidation may or may not result in a single judgment. Shipping: Combining several smaller shipments into a full container load or a large shipment to avail of better freight rates. Deconsolidation service , refers to dissecting a containerized shipment into its original constituent shipments, for delivery to their respective consignees. It is also verbalized as degroupage. It’s an efficient way to distribute a large consignment of product with ease by consolidating and deconsolidating. But this ease process requires a well trained expert team to efficiently handle these services. On the basis of what inventory and at what place, assembling and disassembling criteria is undertaken under the care of Expert team. Collaboration with customers and their suppliers helps the Expert team to easily cope up with the process and thereby lower the cost per unit by optimizing freight cost. LCL Consolidation means Less Than Container Cargo Consolidation. When the customer, want to ship cargo and it is small in volume and weight and cannot utilize the capacity of a full container than LCL shipment is processed. The advantage of LCL consolidation for a client lies in a fact that the clients do not have to pay for the entire container. Packages are grouped together in accordance to their destinations and packed into an appropriate container after ensuring compatibility with other cargo as well as safety of your cargo. These cargos are then shipped to a re-working hub station where individual packages are sent to their respective destinations. Advantages of LCL Consolidation: Savings of Freight Charges: Clients can get a reduced rate of a full container and pay shipping costs according to weight or measurement of their cargo occupied in side container. Benefit for minor Industrialists: Provides best opportunity for Small scale manufacturers to sell and buy product according to their capabilities. Savings on Origin and Destination local fees: It provides clients not to unusually pay to the ports rather to the LCL consolidators at both origin and destination. 3PL Service or Third Party Logistics Services include freight forwarders, courier companies, as well as other companies integrating & offering subcontracted logistics and transportation services. Standard Services: Most basic form of a 3PL Service. Activities performed are: pick and pack, warehousing, and distribution (business) – the most basic functions of logistics. Service Developer: Advanced value-added services such as: tracking and tracing, cross-docking, specific packaging, or providing a unique security system is offered to customer. A solid IT foundation and a focus on economies of scale and scope will enable this type of service to perform these types of tasks. The Customer Adapter: A type of 3PL service which is requested by the customer and essentially takes over complete control of the company's logistics activities. It improves the logistics dramatically, but do not develop a new service. The Customer Developer: This is the highest level attained by 3PL service with respect to its processes and activities. Its occurrence is based on its integration with the customer and takes over their entire logistics function.
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Consolidation Services, Deconsolidation Service, LCL Consolidation, 3PL Service,
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