What is Deconsolidation?
Deconsolidation is a logistics technique leveraged to break down inbound shipments into multiple shipments. It is the process of breaking down a consolidated shipment so that deliveries can be made to the intended parties. This is the opposite of the logistics technique known as consolidation, where shipments from various manufacturers are placed on one truck. There are benefits to the deconsolidation technique that may make it the right logistics technique for you. Below are the important benefits of deconsolidation.
Deconsolidation is an efficient shipping method. It is more productive because, instead of having one truck make deliveries all over, shipments can be organized on to trucks that can make more efficient routes. This allows freight trucks to get to its intended destination quicker than if it were in a consolidated shipment. While consolidation is also an efficient logistics technique, your specific freight logistics situation will determine with method is the most efficient for your specific needs.
Quicker Logistics Technique
Deconsolidation can be a much quicker logistics technique in certain scenarios. For example, if you have a lot of different shipments going to different areas – deconsolidation will absolutely be the way to go. This is because your product can be deconsolidated onto multiple trucks and organized by the intended destination. This allows shipments to get to where they need to go, quicker.
Additionally, deconsolidation leads to faster speed-to-market for retailers. If you need to get the product to several different retailers in a time crunch, the deconsolidation method is your best bet. The product will be distributed to appropriate trucks that will be directly on-route to your retailers. This allows retailers to quickly receive the product and get it to market. Delays in speed to market can directly affect your bottom line, making deconsolidation great for profits.
Greater Inventory Management
When deconsolidation is done correctly, it enables greater inventory management. Inventory management is a vital part of the supply chain, as it supervises the flow of goods from the manufacturer all the way to the point of sale. Deconsolidation provides a much closer look at inventory management, as inventory is more directly going to the market and being sold to local markets. This allows for greater tracking of inventory and a birds-eye view of trends in each market.
Deconsolidation with National Retail Systems, Inc.
There are many benefits to deconsolidation, but these benefits will only be realized if deconsolidation is effectively executed. National Retail Systems, Inc. provides third-party managed deconsolidation services. We have been doing this for over 65 years, allowing us to perfect deconsolidation logistics to provide tangible results for our customers. To learn more about how you can achieve greater efficiency, speed to market, and inventory management through deconsolidation, contact us today.
The Ultimate 3PL
National Retail Systems, Inc. (NRS) includes Keystone Freight Corp. & National Retail Transportation, Inc. (NRT). NRS is an asset based 3PL that has been providing logistics services for the World’s leading retail companies for 60+ years. Our hub locations include: New York & New Jersey; Los Angeles, CA; Inland Empire, CA; Savannah, GA; Columbus, OH; Greensboro, NC; and Baltimore, MD.