Right now, anyone who makes products intended for large-scale distribution is being hurt by the ongoing shipping crisis – as are the shipping companies. There’s a genuine need for better shipping optimization which makes the most of available trucks, while still keeping costs as low as possible.
For many companies, the solution to this is retail pool distribution.
What Is Retail Pool Distribution?
Pool distribution is similar to Less-than-Truckload (LTL) in that it involves filling trucks with several smaller shipments. However, where LTL generally involves sharing truck space with products from many other companies, pool distribution usually only involves a single company or organization.
Pool distribution is focused on geography. If a company needs to ship a large number of shipments to the same region, such as a single state, they can combine those shipments into a single trailer. Then the trailer arrives at a regional distribution center and uses more traditional shipping methods – or LTL – to bridge the last mile.
Most often, this is done at either the carton level or pallet level, which gives shippers and their clients a lot of leeway in packing the truck as full as possible. In some cases, multiple clients may be involved. However, unlike LTL, these clients are usually working in cooperation – such as nearby factories cooperatively pooling their resources to share shipping containers.
Some shipping companies even offer dedicated solutions, tailored to the specific needs of each client.
The Benefits Of Retail Pool Distribution
Pool distribution isn’t for every company. In particular, it requires a company to make and ship enough product to reliably fill shipping containers. If they don’t, LTL is probably the better option.
However, for companies that do ship large amounts of product, there are several clear benefits:
1 – Speed
Pool distribution typically involves fewer stops and changes between transport methods, compared to LTL, resulting in better delivery times.
2 – Easier tracking
The relatively straightforward nature of pool distribution, and reduced number of changeovers, also make it easier to track products en route.
3 – Lowered greenhouse emissions
Since pool distribution is about maximizing the use of each individual truck, fewer trucks on the road mean a lower carbon footprint.
4 – Reduced costs
Of course, all this adds up to lowered costs for the shipper, and likely fewer customer complaints as well.
Reach Out to Us for Retail Pool Distribution & More
US Logistics Solutions specializes in finding the right solutions to your shipping challenges. Contact us to discuss your options.
