The Importance Of Consolidation Freight consolidation is one of the lynchpins of the commercial trucking industry, and is central to the operating methods of nearly all large-scale logistics providers. It is a vital part of freight distribution and is often a factor in supply chain decisions made by commercial companies. There are several very good reasons for instituting consolidation for both inbound and outbound freight on different levels of the supply chain. The reason which has the most direct appeal to businesses is that consolidation is much more efficient and therefore saves the money and resources of the trucking company – which in turn means that the 3PL provider can pass on the economy to their clients. This of course can feed into other potential economies for the both the trucking company and the client, because the consolidation of freight can make it much simpler for a business to find trucks and other logistic resources. It can also simplify dealing with freight brokers and any number of other third-party logistics agents who arrange everything from dock work to pallet exchanges. Consolidation has one other big upside for businesses that need freight transported – it makes specialist means of transportation, and other logistic arrangements, an economic viability for small and medium businesses. The possibilities for the distribution of outbound freight and the sourcing of inbound freight by a trucking company are much wider if the freight can be consolidated in shared trucks and warehousing. Freight truck fleets that consolidated the freight they deliver can afford to take more freight further for the same cost, thus satisfying more clients at a lower cost. And it isn’t just in-transit motor freight trucking that benefits from consolidation. The same potential for large gains exists at other stages in the supply chain. For example, consolidation of freight in storage trailers and warehousing leads to a much more efficient use of available warehouse space. Of course, another compelling reason for the consolidation of motor freight is that it cuts down on the environmental cost of the trucking company’s business, which is already a serious concern for many third-party logistics providers and is increasingly becoming a hot topic for businesses in all industries. The growth in demand for expedited freight is also easier to meet in an environmental responsible manner if freight loads are consolidated.