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Distributing multiple orders over great distances to the same destination isn’t very economical. Most businesses are unsure of what to do when they find themselves in this situation. Fortunately, there’s a solution: using pool distribution. Before we get started, let’s review the important information you should know about the service.
Key takeaways:
We’ll teach you everything you need to know about this service so you can implement it into your supply chain.
Although pool distribution is a fairly straightforward service, it consists of multiple parts.
Completing each of these steps correctly is essential for efficient pool distribution services.
Related: Flow Through Distribution
Pool distribution is a helpful service, but it can have its downsides as well. In the following sections, we’re going to lay out the pros and cons to help you decide if this service is right for you.
There are numerous benefits you’ll be able to reap when using pool distribution services.
If you’re shipping multiple orders at once, you’ll have to contend with slightly different transit times for each one. Unifying multiple shipments will ensure they all arrive at the pool point at the same time. As a result, they’ll be loaded into their respective delivery vehicles and dropped off at the final destination on the same day.
To demonstrate the speed of pool distribution compared to less-than-truckload (LTL), consider some data I’ve provided.
Shipping multiple orders to the same destination from a far off point can be more costly. You’ll need to use numerous trucks for transport and final delivery. Labor costs will also have to be paid to load and unload each shipment. By pooling multiple orders together, you’ll save on these logistics expenses.
Combining multiple shipments together is much more efficient than transporting them separately. When you pool orders, you’ll be able to maximize the amount of space inside a trailer. It’ll also be more efficient for workers in your warehouse to load and unload one large shipment from a single trailer, instead of multiple shipments from numerous trailers.
One common problem with LTL shipments is that they’re more prone to damage. That’s because they’re handled numerous times while in transit. By using pooling instead, you reduce the frequency of touchpoints, which lowers the chances of damage occurring.
Despite the benefits of pool distribution, there are a variety of downsides that you should know before using it.
As we’ve already covered, pool distribution comprises multiple steps. Performing each one in tandem with the other can be difficult for businesses to pull off. Even if one step is performed incorrectly, the entire service can be put in jeopardy.
Pool distribution requires businesses to take certain steps to scale their operations, such as:
This can be difficult for businesses that don’t have the necessary resources. Pool distribution is best used when you have a high volume of LTL freight. This makes it a great option during peak season or any other time of the year when orders are on the rise. If your order volume is low, then this service probably isn’t right for you.
Pool distribution isn’t always a viable option for certain products. For example, it’s not a good idea to combine an order that requires refrigeration with cargo that doesn’t need this type of treatment. If you’re going to use this service, you’ll need to be aware of similar product limitations.
Finally, you’ll need to make sure you have a reliable distributor within the region, typically a 3PL provider. Coordinate with them to ensure deliveries can go out as planned once a truckload of orders is received.
You may have realized that LTL and pool distribution are quite similar to one another. Both services are used to combine multiple shipments into one trailer. That said, each service has distinct differences.
Fore one, LTL shipping combines your load with smaller ones belonging to different shippers, while pool distribution combines shipments that all belong to you. As a result, you won’t have to worry about your cargo mixing in with another shipper’s cargo when using pool distribution.
This is the major difference between the two services, but I’ve listed some additional ones that you should know.
Knowing these differences will help you discern which service will work best for your given circumstances.
There are a variety of reasons why a business could benefit from pooling shipments together. For one, pool distribution is an excellent choice for businesses that are shipping a high volume of goods to the same geographic area. It’s also a better option when you need to ship a high volume of freight in a short amount of time.
Related: Fulfillment Optimization
Fulfillment and Distribution has numerous services and warehouses that can boost your supply chain. Our resources are directed by leadership that has over 80 years of combined experience in the logistics industry. Each of our warehouses are run by well-trained staff that will handle your freight with the utmost care.
You can find our warehouses in the following locations:
If you require the guidance of a professional, then consider booking a consulting session with one of our experts. Book a session today by calling us at (866) 989-3082. You can also get started with one of our services by filling out a quote.
