For example, shipper A figures out their current processes are resulting in higher freight spend across the entire company.
The means of improving freight spend would need to consolidate less-than-truckload shipments going more than 500 miles away from the distribution center to full truckload shipment.
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When a broad definition is used, an urban consolidation center (UCC) is best described as a logistics facility that is situated in relatively close proximity to the geographic area that it serves, be that a city center, an entire town or a specific site (e.g.
Before you can understand how a transportation consolidation program functions and benefits companies by reducing freight spend, you need to understand a few things about transportation costs and concerns.
Some common concerns for shippers include the following: Each of these factors represents real problems for transportation providers and shippers, but despite this, they still need to meet the needs of their customers.
Less-than-truckload shipments, if small enough, are transferred to full truckloads.
For example, less-than-truckload shipments result in higher fuel costs to a shipper due to inefficient fuel usage while driving and frequent stops.
Consolidation activities take place at the urban consolidation centers.
Long haul transportation vehicles of various modes dock at the UCC to unload their cargo.
In this example, shipper A needs help from someone else.