How Partnering With a 3PL Will Help You Minimize Your International Shipping Costs

1. How Partnering With a 3PL Will Help You Minimize Your International Shipping Costs What do you do when your shipment is ready to be transported to your customer overseas, but the freight volume does not justify the cost of full container? Most of the shippers pick between the two evils: ship the product via less-than-truckload (LCL) and bear the expenses or wait till they can build a full container to optimize the costs. However, in the latter option the shipper risks delivering the product at expected arrival time. The modern customer wants friendly, cost-effective, and speedy delivery of their products and as a retailer, you should focus on finding the delivery solutions that would help you satisfy your customers while managing your costs. We have a 3rd option for you: freight consolidation services (or “buyer’s consolidation services”) provided by third-party logistics (3PL) companies, where your shipment load is shared with other relations who are facing the same problem as you. To show you exactly how the consolidation services work, this article will explain consolidation in a simplified manner and highlight the micro services that you can expect your logistics partner to fulfill. What is Buyer’s Consolidation? A buyer’s consolidation is a process of grouping several packages from multiple shippers in one container and shipping them to a common destination for one consignee. The consignee’s cargo will consolidated together at one warehouse and wait until there is enough cargo for a 20’ or 40’ container. Consolidated shipments are ideal for shippers who have a little more time to wait while cargo is consolidated and who are looking to reduce overall shipping costs. What Can You Expect from Your 3PL Partner? A company offering buyer’s consolidation services will reach out to your suppliers to arrange the pickup of the items you want to ship, inspect the order to ensure that everything is in

2. place, consolidates your packages with the others, manages all the required documentation, and ensure that its safely delivered to the destination. Here are the prime buyer’s consolidation services that your 3PL partner will provide to ensure a successful consolidation process: Pick-Up & Loading The packaging and loading of the package play a crucial role while consolidation of shipment as your product must be carefully grouped with a cargo that is destined for the same location as yours. Your logistics partner will arrange a pickup of the cargo from your suppliers and secure it in the container of export at the consolidation warehouse. Error-Free Documentation Shipment consolidation requires the completion of various documents such as creating the inventory of cargo volume and shipping schedule options, issuing Bill of Lading and Container Manifest, issuing arrival notice to consignee, and arranging customer brokerage services if requested. Your 3PL fulfillment partner will ensure that all the documents are filed as per the accepted standards. Efficient Purchase Order Management System Consider your consolidation service provider to be the manager of your shipment. They will ensure that the package reaches your customer safely while providing a visible status tracking system of your shipment to you, your supplier, carrier, and destination manager along with the complete report. Create a Optimal Shipping Solution Consolidation shipping may seem like a lot of work at the first glance, but working with an experienced freight forwarder with consolidation experience can help you navigate this shipping alternative, thus making it worth the effort. When implemented properly, freight consolidation services can help you optimize your shipment fulfillment process. This will have a ripple effect on your customers as you will be able to provide a lower cost, more efficient shipping solution.