What is Consolidation in Logistics?

Consolidation in logistics refers to combining multiple shipments into one larger shipment. This helps to optimize freight space and reduces transportation costs for the shipping company.

Freight consolidation involves grouping several smaller loads from different suppliers or customers into a single larger shipment, often using a transportation unit like a container. This process is commonly used in supply chain management to increase efficiency and reduce transportation costs. Consolidated freight can also help reduce the carbon footprint associated with shipping by decreasing the number of individual shipments and the distance travelled.