Benefits of Pool Distribution
Pool Distribution is a cost-effective solution for customers/businesses to move their products to end-users efficiently with less travel time and costs. The concept of the pool distribution strategy is to pool different freight going to the same area or region of distribution- very similar to "carpooling" when either commuting to work or school. If you are moving freight between several regions, shipping a high volume of less-than-truckload shipments, or looking for options to save money on more extended freight transport moves, then you should consider pool distribution as a strategy. Shipments bound for the same region of distribution that is usually shipped through LTL trucking are combined to a full trailer for delivery. Once the freight reaches its final destination, the freight is sorted for local delivery to customers.
• Truckload (TL) or Pool Distribution rates are more fixed and secured than freight LTL prices. The significant benefits of pool distribution are lowered costs for smaller shipments and giving customers an opportunity to save money on pooled shipments versus LTL transport methods that may have higher rates for smaller shipments.
• As parcels are bound for one region or area of distribution, freight is consolidated in one staging area and then loaded on trailers for that specific area. This process saves on multiple resources such as overall transportation costs, time and fuel; much like carpooling. Another added benefit is that it prevents vehicle wear and tear or depreciation of trucks/trailers.
• Pool distribution also reduces carbon footprint. As we move towards environment and energy conservation, pool distribution is also an effective way to reduce carbon footprints in the transportation industry as there will be fewer trailers on the roads. Fewer trucks on the road contribute to less fuel and energy consumed while transporting goods.
• By utilizing the pool distribution strategy, deliveries to final destinations are executed with the least handling possible, thus resulting in less potential claims. LTL shipments have the possibilities of going through several hubs on the way to its final destination. This method can take twice as long compared to the Pool Distribution method. As parcels pass through different hubs and move from one trailer to the next, there is a higher likelihood of product damage. Opting for the pool distribution method can help minimize these risks because there will be "less handling" of your goods.
Pool distribution has helped raise the service level of shipping as partners/carriers continue to add this method as one of their core services. Higher service levels across the shipping industry are essential as customers rely heavily on carriers to ship their goods, therefore, having options when shipping goods is key to streamlining overall supply chain costs. It is vital in today's evolving business culture that companies select proven partners who can offer total supply chain solutions to help optimize their customized business needs. Dependable Supply Chain Services include FTL, Warehousing & Distribution, Harbor Drayage, Global Ocean & Air, Hawaii & Guam, and Third-Party Logistics making us your all-star team for customized solutions.