What is the primary goal of freight consolidation?

The primary goal of freight consolidation is to reduce transportation costs. When multiple smaller shipments from various suppliers are combined into a larger shipment, it allows companies to take advantage of economies of scale. Larger shipments typically lower the cost per unit because shipping costs are distributed across more goods. This approach minimizes the overall expenditure on transportation by maximizing the use of transport vehicles, reducing the number of trips needed, and often allowing access to more favorable shipping rates that are available for bulk shipments.

Expediting shipping times is not the main goal of freight consolidation, as it may actually have the opposite effect in some scenarios due to the time needed to gather multiple shipments together. Similarly, while increasing shipment size can be a byproduct of consolidation, it is a means to achieve cost reduction rather than an end goal itself. Enhancing customer satisfaction, although important in logistics, is more of a secondary benefit that may arise from cost savings and efficiency rather than the primary objective of the consolidation process. The main focus remains firmly on cost reduction, making it a pivotal strategy in international logistics.