In today’s business climate, the importance of a sound logistics strategy cannot be understated. An effective distribution network can be the difference between a company’s success and failure.
One distribution strategy that is often overlooked is pool distribution. Pool distribution is a type of collaborative logistics in which two or more companies share resources and transportation in order to increase efficiency and cut costs.
Let’s explore the advantages of pool distribution logistics and some of the industries like retail pool distribution in which it is commonly used.
Better Delivery Speeds with Pool Distribution
Delivery speeds are one of the most important aspects of logistics. For businesses who are providing products and/or services, this aspect of logistics matters because it is the reflection of how efficient your business works and how you utilize your resources.
Pool distribution is the gathering of parcels from different companies destined for the same area following a set schedule so that carriers can make multiple pickups at once instead of making separate stops at each address. With this method, you can trust that your goods will be delivered faster since they are collected and sent with several other consignments at once.
Increase Margins with Reduced Freight Costs
One of your biggest goals is increasing margins. With pool distribution logistics, freight costs are reduced and your margins are increased. Each product pool is specifically billed based on a percentage of the revenue, not a base rate. This makes it easier for you to predict freight costs as revenue increases.
Lower Risk for Insurance Claims and Damages
Pool distribution reduces the risk of damages and claims during logistic operations for your business because, as part of the service (such as pool trucks, intercare and transloading), the carrier is responsible for the transportation of your goods. This, coupled with liability insurance taken out by the provider, protects your business against potential damages or loss during transit times.
Lower Carbon Footprint
Pool distribution logistics reduce carbon emissions and your business’s carbon footprint because pooling distribution means that shipments are routed through hubs rather than being sent and rescheduled. Because the product is shipped within the same truck (to other companies), warehouses and logistics facilities can be smaller, which allows for fewer vehicles on the road, less congestion and lower fuel consumption.
Improved Service & Faster Distribution
Pool distributors often have access to faster transportation services and equipment needed to expand their reach across large territories. They offer a broad range of pick-up locations, often provide greater warehouse capabilities with nightly cut-off times, and offer unique supply chain visibility tools via their technology offerings.
Use Pool Distribution Logistics from US Logistics Solutions
At US Logistics Solutions, we offer pool distribution logistics services that can help you improve your supply chain efficiency. Our retail pool distribution services can help you reduce transit times and improve customer satisfaction. Contact us today for more information about our pool distribution logistics solutions.