The ins and outs of distribution/consolidation services

Distribution and consolidation services and products provide shippers with a cost-effective way to manage their material flow.

By Staff -- Logistics Management, 12/1/1998

Whether logistics managers choose to manage distribution and consolidation themselves or outsource those functions, many services and products are available to help them cut costs and save time. Along with the distribution and consolidation services offered by many regional less-than-truck-load carriers, shippers may want to consider such services and products as pool distribution and transportation-management software. The following is a small sampling of what's available today.

Emery Worldwide Global Logistics offers several distribution management services, including distribution-facility management, import and export processing, and reverse logistics.

Emery helps companies control capital expenditures and overhead by centralizing distribution, sourcing, and warehousing operations. Emery offers everything from leased space to entire warehouses, such as its Dayton Logistics Complex, which either the customer or Emery can operate and manage. In addition, Emery can provide on-site management and labor at a company's existing facilities.

Emery also can operate import/export processing centers to provide consolidation of vendor products for shipment to a company's production facilities, receipt of bulk material from a company's plant for deconsolidation and distribution to customers, special labeling and product marking, and product configuration.

In addition, Emery Worldwide Global Logistics' reverse-logistics service helps companies manage their total material flow. This service consists of packaging, including reusable containers; regional collection of customer returns to be forwarded to the customer's designated repair center; central test and repair facilities; and warranty exchange programs.

Preston Trucking Co. Inc. provides consolidation and distribution programs at each of its 61 service centers. These programs offer customers the opportunity to reduce per-unit costs while improving transit times. Preston can tailor a program to fit any company's consolidation and distribution needs.

Under Preston's consolidation program, freight originates within Preston's base service area and is collected at one Preston service center for consolidation on a trailer belonging to the customer or a truckload carrier. The loaded trailer then is moved to the final destination.

With Preston's distribution program, freight originates within or outside of Preston's base service area. The accumulated less-than-truckload shipments move via truckload carrier or private fleet to a Preston service center. They then are rated at competitive less-than-truckload rates and dispersed to destinations within Preston's entire service area.

In addition to its consolidation services, Nussbaum Trucking Inc. now offers pool distribution of less-than-truckload and parcel freight.

Nussbaum's enhanced "hub and spoke" system provides an efficient flow of material from a company's suppliers throughout the Midwest into Nussbaum's central terminal in Normal, Ill. Once the material has reached the central terminal, the freight is consolidated into truckloads and shipped according to the customer's delivery schedule. Customers have the option to use Nussbaum's trucks, select another carrier, or use a private fleet from the initial pickup through the linehaul.

With Nussbaum's pool-distribution service, product is pooled in truckloads by region and delivered to a distribution center, where the less-than-truckload and parcel freight is unpacked and handled once. The less-than-truckload freight is delivered to the customer, and the parcel freight is shipped via a local ground parcel carrier.

USF Distribution provides distribution, consolidation, distribution-center bypass, fulfillment, and return services through its facilities in Atlanta; Chicago; Columbus, Ohio; Denver; Los Angeles; and Newark, N.J.

With the distribution service, pooled products are moved to USF Distribution's flow-through facilities for customized handling and delivery. Integrated information systems allow customers to bypass their distribution centers for selected product categories. USF's merge-in-transit capabilities provide end users with single deliveries of products that originate from such diverse sources as overseas suppliers, domestic vendors, and distribution centers.

USF Distribution's consolidation systems provide customers with earlier visibility of product moving through the supply chain. Consolidation of freight from multiple vendors allows ordering of smaller quantities on a more frequent basis, which supports inventory-reduction efforts.

Aim Caribbean Express Inc. provides less-than-containerload, full containerload, and consolidation services between the United States and Puerto Rico. Ideally suited for retail, chain-store, and general-cargo distribution, Aim Caribbean Express's 106,000-square-foot warehouse facility offers storage, consolidation, and distribution throughout Puerto Rico.

Advantages of these services include full coordination of door-to-door freight movement, coordination of empty container pickup and delivery, shipment tracking and tracing, and handling of dock receipts and electronic submission of the customer's export declaration requirements.

ACS Logistics, a subsidiary of APL Ltd., offers international consolidation, deconsolidation, warehousing, and distribution services for merchandise moving between Asia, Europe, and the Americas. ACS Logistics provides two specialized consolidation programs that include Multi-Country Consolidation (MCC) and Pipeline.

ACS offers its MCC service in conjunction with APL. The companies' weekly "hub and spoke" service coordinates the collection of less-than-containerload shipments from multiple vendors in multiple contries. APL Ltd. carries less-than-containerload shipments from their origins and consolidates them into full containerloads at three central hubs: Singapore and Kaoshiung (Asia-Europe) and Yokohama (trans-Pacific). APL then carries the full containers to their final destinations.

Within 48 hours, ACS sends a pre-alert from origin to hub. Within 24 hours, the hub sends the customer a consolidated advance shipping notice. In addition to preparing a container manifest reflecting the cargo details, ACS consolidates all origin documents and dispatches a set from the ACS hub to the customer.

ACS Logistics' Pipeline service allows customers to co-load their less-than-containerload shipments in an ocean container destined for the Northeast, which then is shipped via an ocean carrier that provides both ocean and intermodal rail services. The ocean freight rate ACS will charge is based on a pro-rated, full-containerload rate rather than the less-than-containerload rate. ACS also moves the container from the carrier's container yard to ACS's container freight station in South Kearny, N.J.; notifies the customer's broker; monitors customs clearance; and releases the less-than-containerload shipment to the customer's trucker. ACS then invoices for origin receiving, origin consolidation, pro-rated full-containerload ocean freight, and destination handling charges.

Old Dominion Freight Line provides specialized distribution and consolidation service throughout its nationwide service network.

Old Dominion can receive daily less-than-truckload shipments from customers' vendors or other carriers at one of its service centers. The company has eight distribution and consolidation service centers and three distribution service centers throughout the United States. Once the product arrives at the designated service center, Old Dominion incorporates the product into its regular delivery schedules. Product distribution can be accomplished on either a regional or interregional basis.

In addition to its distribution services, Old Dominion can provide pool consolidation. Each day the product is picked up by Old Dominion and stored at the selected service center. The product then is loaded onto the customer's own equipment, Old Dominion's equipment, or equipment owned by another carrier selected by the customer for delivery.