Pool Distribution

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Pool distribution experts

What is pool distribution?

Pool distribution involves consolidating multiple shipments from a single shipper or multiple shippers at one point of origin. Then the individual shipments / load moves to a specific geographic region, with multiple delivery points within that region for individual shipment delivery.

How does pool distribution differ from traditional distribution models?

Pool distribution differs from traditional distribution models, such as direct-to-store or direct-to-customer, by consolidating shipments from various sources to reduce transportation costs and improve efficiency.

What are the financial benefits of pool distribution?

Pool distribution is more efficient than other shipping options as it removes the need for multiple legs on the trip. Typically the most costly miles for a truck are the first and last few miles.
Pool distribution cost is based on density and miles, meaning it does not require complex formulas and is more straightforward to calculate the costs.
Besides density and volume, other factors impacting the efficiency of pool distribution is the distance from the distribution center to the pool point as well as the percent of cubic feet of the truckload trailer that is filled with freight loaded at the distribution center. The greater the mileage from origin distribution center to destination pool and the higher percentage cube of the truckload trailer, the greater the cost savings potential.
Pool distribution is faster as your shipment will be making fewer stops & makes it easy to track your shipment.
By placing fewer trucks on the road you are doing your part to reduce carbon footprint. Pooling shipments is a great way to begin “going green” & to consume less fuel.

What are the strategic advantages of pool distribution?

Accurate inbound (over, short & damage) receiving reporting.
Timely reporting & accurate invoicing.
Consolidating freight from a single shipper or multiple shippers from one single point of origin.
LML provides domestic pool distribution /last mile distribution services through an approved network of more than 1000 approved distribution vendors that specialize in regional and national distribution services.

Why should I pick pool distribution?

You should consider pool distribution if you have multiple shipments to be delivered within the same region, are looking to reduce transportation costs, want to improve delivery speed and reliability, and are interested in a more environmentally friendly supply chain approach.

What are some challenges with pool distribution?

Implementing a new strategy requires a change in thinking, process changes, & coordination with the right Third Party Logistics provider along with possibly making commitments on volumes to get the best pricing.

How do I find the right Third Party Logistics pool distribution provider?

Select a 3PL pool provider that has an established network in the regions / markets where you & your customers have a need.
Select a 3PL pool provider that ship compatible products.
Select a 3PL pool provider that has the necessary systems & technology.
Select a 3PL pool provider that has 24 X7 visibility, an established record regarding chain of custody, & has the ability to provide up to date freight status from a single source.
Select a 3 PL pool provider that has a proven track record with scanning, track & tracing, reporting, web interface, & written SOP’s by customer.
Select a 3 PL pool provider that is available 24 X 7 … 365 days a year.

What is the future of pool distribution?

The future of pool distribution will likely see continued growth, driven by the increasing importance of cost-efficiency and environmental sustainability. Advances in technology, such as route optimization and real-time tracking, will play a significant role in further improving the effectiveness of pool distribution services.