Consolidated Shipments for Apparel: How Much Could You Save?

Consolidated Shipments for ApparelAs we mentioned last time here on The Apparel Logistics Group blog, mopping up as many little opportunities for savings possible throughout your supply chain can make the difference between a product line's success and failure. Negotiating down shipping costs is one way. Maximizing shipping efficiency is another.

This is most commonly done through what's called "shipping consolidation and deconsolidation" -- also known as "group shipping" -- a key part of our apparel 3PL services. The concept is pretty simple, but effective:

Truck space, air cargo space, and shipping containers are all expensive. But by consolidating shipments, you can cut down that cost in a big way. After the ship arrives at its destination port, the shipment is deconsolidated again, and everything goes on its merry way.

Savings vary depending on a slew of variables (distance, transportation mode, demand, etc.), but most studies show that consolidation lowers costs in a major way. On average (depending on the percentage of a shipping container you fill), savings range from 38 percent to 50 percent. Beyond space costs, consolidation can also simplify import costs such as duties and taxes.

Simple, right?

It's easy, but shipping consolidation/deconsolidation does, in fact, add an extra bit of risk to the production process.

Apparel supply chains are already long, complicated and prone to expensive mix-ups and confusion. Both the consolidating and deconsolidating processes add yet another extra two steps to the process, which means there would be two added opportunities for costly mistakes and errors to be made. Furthermore, if consolidation/deconsolidation is not done efficiently and quickly, the extra fees companies pay for the service could end up outweighing the service's savings. And it doesn't work as well when final destinations are remote and "off the beaten path" of regular shipping traffic.

Therefore, in order to make apparel consolidation/deconsolidation work for your company, it's critical that the service be handled by a supply chain management company with a reputation for:

  • Trust
  • Expertise
  • Experience

Here at The Apparel Logistics Group, we can help. Our apparel international transportation management experts can get your products where they need to go and allow you more time to focus on your core business. Besides improving productivity and efficiency we can help you save on your capital expenses.

Posted: 3/13/2012 1:06:58 PM by Global Administrator | with 0 comments

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