23 Jun Pool Distribution and Retail Store Deliveries

If you are frequently managing multiple less-than-truck (LTL) shipments your transit times are likely overcomplicated and unnecessarily long. Your inventory may also be at a high risk of being misrouted or damaged as a result of multiple re-handlings at the LTL carrier’s source, intermediate or final retail terminals. Pool distribution is the surest way to improve your transit times and to reduce your transportation costs.

By definition, pool distribution (sometimes called cross-docking) is distribution of orders to several destination centers within a specific geographical region. Compared to the higher cost of the traditional LTL shipments, pool distribution offers a cost-effective and superior alternative. Rather than shipping directly from the origin shipper to the retailer orders are shipped directly to regional terminals on consolidated trucks. The pool is then offloaded, sorted, and segregated by the consignee before being loaded on local delivery trucks for the final delivery to the ultimate retail stores.

Benefits of using pool distribution for retail deliveries are:

1. Faster Delivery

Compared to the traditional LTL delivery pool distribution combines efficient, fast processing procedures and experienced truckers to deliver freight on the same day or within 24 hours after receipt. The pool distributor receives the line haul cargo from retailers, sorts it by the retail store and then delivers within the territory.

2. Reduced Freight Cost

With Pool distribution, the freight is often combined with other companies shipping to the same territory and to same retail outlet. Thus, truck load factor is much higher and costs are evenly shared, reducing the huge freight charges traditionally associated with the direct LTL shipments.

3. Reduced Product Claims and Losses

Freight consolidation usually means an extra check point and extra control regarding both quality and quantity issues, like damaged goods or missing cartons. Therefore, mistakes are spotted before reaching final customer, keeping product claims and loses from the retailer low.

4. Reduced Carbon emissions

Reducing carbon emissions gained importance over last few years and in many logistics companies or departments carbon emissions is one of target KPIs that must be reached. Consolidating freight in one FTL trailer and using it instead of larger number of smaller trucks or LTL drives will significantly reduce your carbon emissions.

5. High Volume Freight Handling

A majority of pool delivery service providers have efficient sort systems that can process more than 100,000 cartons in less than 24 hours. The large fleet of vans and trucks ensures that a huge volume of inventory is shipped to the regional center in the shortest time possible.

With the rising need to move goods quickly and the decreasing margins, pool distribution remains the most cost-effective and fastest way to keep fast turning retail products moving from the pool operator to the retail stores.

Logistics companies that offer pool distribution services not only receive your goods but also assemble ir regional service centers before making the final delivery. They also offer extra value-added services like RFID application and barcode scanning.

All these services not only decrease shipping times but also shipping costs and the damages associated with multiple handling of inventory.  If you are interested in learning more about pool distribution or would like an evaluation of your current supply chain please contact a Pathmark representative today!