Package Consolidation

Package consolidation is the practice of combining multiple packages or shipments into a single larger shipment to reduce overall shipping costs. This strategy leverages volume discounts and more efficient transportation.

Types of Consolidation

Order Consolidation

• Combine multiple items from one customer’s order
• Ship together instead of separately
• Reduces per-package costs
• Improves customer experience

Customer Consolidation

• Batch orders to same address/area
• Single delivery attempt
• Common in B2B shipping
• Reduces last-mile costs

Carrier Consolidation

• UPS SurePost, FedEx SmartPost
• Major carrier to destination region
• USPS handles final delivery
• Significant cost savings for residential

Cross-Dock Consolidation

• Receive from multiple suppliers
• Consolidate at distribution point
• Ship to destinations together
• Reduces inbound transportation

How Carrier Consolidation Works

UPS SurePost / FedEx SmartPost:

1. Pick up packages from shipper
2. Transport to destination region hub
3. Hand off to USPS for final mile
4. USPS delivers to doorstep

Benefits:

• 10-30% savings vs. standard ground
• No residential surcharge
• Wide delivery coverage

Tradeoffs:

• Slower transit (5-10 days)
• Less tracking visibility
• Two carriers = more handoff risk

Consolidation Savings

Consolidation Services

For E-commerce

• Route - Multi-package order consolidation
• Shippo - Smart shipping rules
• ShipStation - Batch processing

For International

• MyUS - US forwarding consolidation
• Stackry - Package combination
• Planet Express - International consolidation

For Freight

• Flexport - LCL consolidation
• Freightos - Multi-shipment booking

When to Consolidate

Good candidates:

• Multiple items to same customer
• Regular shipments to same region
• Non-urgent deliveries
• High-volume to dense areas

Don’t consolidate:

• Time-sensitive orders
• Items from different orders (usually)
• When customer expects separate tracking
• Hazmat with non-hazmat items

Implementing Consolidation

Hold and Ship Strategy

1. Hold orders for 24-48 hours
2. Check for additional orders to same address
3. Combine if customer reorders
4. Ship consolidated package

Zone-Based Batching

1. Group orders by destination zone
2. Ship zone batches together
3. Use zone-specific carriers
4. Optimize for cost per zone

Cross-Dock Receiving

1. Receive supplier shipments at hub
2. Break down into customer orders
3. Combine related items
4. Ship complete orders together

Customer Communication

When using consolidation:

• Explain potential delay upfront
• Show cost savings benefit
• Provide accurate delivery estimates
• Offer expedited option for urgency