Cargo consolidation is the collection and storage of cargo from multiple senders for their further transportation in one document.
It is not practical to use the whole vehicle for a small consignment, so it is transported as a part of other prefabricated cargo.
Editor’s Note: This represents the third of a 3-part series about sales order picking/shipping, and is drawn from the Essential Guide for Advanced Warehouse Management using Microsoft Dynamics AX: 2016 Edition.
Consolidating LTL shipments into multi-stop truckloads, as an example, allows shipper freight to travel direct to destinations instead of through multiple LTL terminals.
Even without consolidation, warehouses are still having to become much more agile and adaptable to change because of heightened customer expectations created by the boom of e-commerce.
We have our own warehouses in different locations around the world, so we offer the minimum consolidation time of cargoes.
Cargo consolidation includes packaging, packing, bagging, labeling, containerization, and documentation.
As e-commerce increases, manufacturers and distributors now compete in a marketplace that no longer allows for the amount of lead time they used to have.
Because of this, we have seen any number of shippers make the decision to pay expedited LTL costs “just to get the freight to the customer on time.” What those shippers may not realize is that freight consolidation can significantly and reliably improve transit times.
Sales order picking/shipping activities often represent some of the most critical warehouse management processes within manufacturing and distribution companies.
When using the Advanced WMS capabilities within AX 2012 R3 or the new Dynamics AX, many scenarios employ a wave picking approach as a key part of this business process.
At its simplest, a shipment wave reflects the sales lines for a single sales order, so that the wave picking approach is frequently termed order-based picking.