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Parcel Consolidation: A Smart Solution for Reducing Delivery Costs

Knowledge Hub29th Aug 24

 

In today’s market, characterised by fluctuating surcharges and emergency fees imposed by couriers, managing shipping costs can be a formidable challenge for your business.
One effective strategy to mitigate these rising costs is parcel consolidation. By consolidating express packages or samples in a China-based warehouse, you can significantly reduce delivery expenses and enhance your supply chain efficiency.  

Understanding Parcel Consolidation

Parcel consolidation involves combining multiple smaller shipments into one larger shipment. This leverages economies of scale, reducing the per-unit shipping cost. Instead of sending numerous small packages, which can incur high shipping fees, you can consolidate these packages into a single, larger consignment. This method is particularly advantageous for companies with high import volumes or those that experience peak shipping periods throughout the year.  

Key Benefits of Parcel Consolidation 

  1. Cost Savings: By consolidating parcels, you can achieve significant cost reductions. Larger shipments are less expensive per unit of weight, making this an efficient way to manage shipping expenses. Savings can start from 20% against mainstream express courier parcels.  
  1. Reduce Your Sample Costs: ITD offers annual savings up to 30% by collecting samples from all suppliers in China, consolidating them throughout the week in the Shenzhen warehouse, and them moving them as one larger “sample consolidation” into the UK.  
  1. Simplified Logistics: Consolidating parcels simplifies the logistics process. Instead of tracking multiple shipments, you only need to monitor one larger consignment. This reduces administrative workload and minimises the risk of lost or delayed packages.  
  1. Enhanced Supply Chain Management: Consolidation helps streamline the supply chain by reducing the frequency of shipments and ensuring more predictable delivery schedules. This reliability can improve overall supply chain efficiency.  

 

ITD’s Shenzhen Warehouse: Your Parcel Consolidation Partner 

ITD offers a parcel consolidation service through its Shenzhen warehouse, specifically designed to help you reduce delivery costs and better manage their supply chains. Here’s how the process works:  

The Consolidation Process 

  1. Receiving Parcels: Throughout the week (Monday to Friday), cartons and packages are received at ITD’s Shenzhen Warehouse. This allows for a continuous flow of goods into the consolidation process.  
  1. Cut-off time: Cartons are accepted into the warehouse up to midday every Friday. This cut-off time ensures that all parcels can be processed and prepared for consolidation in a timely manner.  
  1. Preparation: Once received, cartons are counted and colour-coded. This approach ensures that all packages are accounted for and organised efficiently.  
  1. Airfreight: The consolidated consignment is then airfreighted to the UK. Because of how express couriers work, the cost per unit decreases with the increased weight of the shipment, making this a cost-effective solution for your business.  

How do I know if my business qualifies for Parcel Consolidation Services? 

This service is beneficial for your business if you go through:  

  • Weekly High Import Volumes: If your business regularly imports large quantities of goods, this service can achieve significant cost savings.  
  • Season Peaks: If your business experiences peak import periods during certain times of the year, you can also benefit from this service, ensuring cost-efficient delivery during high-demand periods.  

Why Choose ITD’s Parcel Consolidation Services?  

  1. Strategic Location: Located in Shenzhen, a major logistics hub, ITD’s warehouse is strategically positioned to serve your business efficiently. The proximity to manufacturers and suppliers in China ensures quick and easy access to goods.
     
  1. Expertise in Consolidation: With extensive experience in parcel consolidation, ITD offers a reliable systematic approach to managing shipments. The warehouse’s operational procedures are designed to maximise efficiency and cost savings.
     
  1. Transparent Process: ITD provides a transparent and accountable process. From receiving parcels to airfreighting consolidated shipments, every step is meticulously managed and documented.
     
  1. Customer Support: ITD Global’s dedicated customer support team is available to assist with any queries or concerns. Their expertise ensures that your business receives the best possible service and support throughout the consolidation process.
     
  1. Save Time Chasing Information: Chasing suppliers or express couriers for tracking numbers, updates and delivery is time consuming and frustrating. Your business will have a dedicated account manager that will chase everything for you.  

At the end of the day…. 

Parcel consolidation is an effective way for your business to cut costs and boost supply chain efficiency in a time when shipping costs are continuously rising owing to variable surcharges and extra emergency fees. ITD Global offers a reliable and cost-effective parcel consolidation service that can help your business achieve savings. By consolidating express packages and samples, your business can simplify their logistics, reduce the environmental impact, and better serve the supply chain.

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