If you’ve heard of pool distribution but unsure if it’s the right “fit” for your company, this article will help. Whether you’re familiar with the pool concept or it’s a new term for you, understanding its value can help your business significantly.
When properly used, the pool distribution logistics strategy can help reduce your shipping costs and create a faster and easier transit for your packages.
What Is Pool Distribution Logistics?
Pool distribution allows you to “pool” multiple shipments that are shipping to the same geographic region.
Here are the four steps that are part of the pool distribution process.
- Your packages are pooled together into single or multiple truckload shipments (depending on shipment size).
- Your shipment is delivered to the distribution center or “pool points.”
- Your packages are sorted and segregated to their destination.
- The packages are loaded onto local trucks for final delivery.
5 Reasons Pool Distribution Will Benefit You
If you’re not sure if pool distribution is right for you, review the list below to see if you “fit” any of those needs.
1. You’re Already Utilizing LTL Shipping
If you’re regularly using LTL for shipments, then pool distribution might be an excellent option for you.
2. You Have Time Sensitive Deliveries
Many LTL carriers have multiple stops on route to their final destination, which increases your package delivery time. Pool shipments have minimal stops in between since they are traveling to the same geographical region.
3. You Want Better Customer Service
When you work with a third-party logistics service (3PL) provider, you will receive more exact shipment information. 3PL will work with local pool carriers allowing your 3PL contact to provide you with detailed shipment information from start to finish.
4. You Want to Increase Cost Savings
Typically, LTL receives the best rates for high-volume shipments. If you’re using LTL for small volume shipments, you might be losing more money than you are saving. When you use pool distribution, you will “pool” multiple shipments into a single load. A 3PL will help you to cut costs and provide you with more cost-effective rates.
5. Reduce Your Carbon Footprint
When you pool your shipments, you can reduce the need for multiple trucks on the road.
Pool Distribution vs. LTL
What is the difference between the two shipping options? While both are shipment methods, there are significant differences between pool distribution logistics and LTL shipping.
For LTL, you only pay for the portion of the trailer used instead of the entire trailer. Other companies use the remaining trailer space.
Pool Distribution Logistics
All your packages going to the same geographic region are combined into single or multiple truckload shipments. Unlike LTL, with pool distribution, you will receive better shipment visibility and a higher percentage of on-time shipment delivery.
Industries that can Benefit from Pool Distribution
Pool distribution plays a significant role in the retail industry. But many industries can benefit from pooling their shipments. Here is a list of some industries that can take advantage of pool distribution.
- Consumer packaged goods (CPG)
- Food and beverage
- High value
- Industrial products
- Packaging materials
BLS Insights on Pool Distribution
Here is a deeper insight into comparing pool distribution and LTL services from the Beitler Logistics Services, Inc. (BLS) team.
Why Pool Distribution Might be the Best Fit for You
- Pool distribution is the more cost-effective option.
- You can set your delivery day and time, allowing you to ensure enough labor is available on delivery day (saving you time and resources).
- Allows for short-term warehousing; we can receive the shipment on Monday and deliver on Thursday. In contrast, LTL provides no control on delivery time. It will deliver the day after the delivering terminal receives the product.
- We inventory each shipment and will prepare an overage, shortage, and damage report.
- If a package becomes damaged, we will repackage or hold it until disposition is provided.
- Pool distribution allows us to deliver loose cartons or pallets as needed.
- We scan each carton to verify delivery (which reduces shrink).
- Linehaul cost savings. You can ship all products to the regional pool point, fill your trailers, and save money on line haul.
Why One Customer Prefers Pool Distribution over LTL
We asked a customer what his number one reason he prefers Pool Distribution over LTL. His response: “Delivery Integrity. The BLS carton level scanning lets us know the packages are intact and delivered in full, even within a narrow delivery window”.
If you have time, please call us, 888-980-5257, and we can discuss further.
Find the Right 3PL for You
Working with a trusted and professional 3PL can help increase your pool distribution success. The BLS team has access to an expansive network of carriers to help companies take advantage of pool distribution. The BLS team can provide you with competitive pricing, eliminate redundancies, protect you from shipping liability, and more.
Contact the BLS team today!