What is order consolidation and why it matters

Imagine you order several purchases online: a mobile phone, books, and a sweater. Each order will arrive, of course, in a different package. But that represents a very substantial dose of inefficiency: three separate trips to cover the same route. The same applies, on a larger scale, to purchases made by people on the same street, area, city, or even region: a huge number of separate trips to make journeys that have a lot in common.

We call the more efficient alternative order consolidation. In this article, we will see how to encourage this strategy and what its advantages are.

What is order consolidation?

This term describes a logistics strategy that consists of combining different shipments into a single dispatch, taking advantage of their common destination or simply shared parts of the route. The objective is obvious: make use of space, reduce the number of trips, and optimize operations.

The InPost network of PUDO Points and Lockers takes this process to its logical conclusion, increasing efficiency even further. Shipments are consolidated and delivered to pickup points, where they can be collected by their recipients. The destination point can be chosen from a list of more than 13 000 options in the Iberian Peninsula.

For businesses, this is a reliable and efficient way to approach distribution logistics. If you have a store, click here to learn more about our business offer and get in touch with us today if you are looking for a logistics partner.

From the consumer's point of view, this is a convenient and increasingly popular way to receive packages, thanks to the various advantages we will look at in more detail below. To discover these advantages for yourself, the next time you shop at a store like Shein or Vinted, simply select InPost pickup points as the shipping method on the checkout screen.

What does the consolidation process consist of?

Very simply, and in very broad terms:

• Receiving orders at the warehouse.
• Grouping items that are going to the same destination.
• Organizing packages so as to make maximum use of space.
• Creating a single shipping label and updating tracking.
• Joint departure to the delivery point.

When volume consolidation is applied in a business context, it is necessary to anticipate some possible dilemmas. For example, if an item in a shipment is delayed, it may be necessary to decide between delaying the entire shipment or splitting it. Internal coordination can also become more complex.

Benefits

These are the main advantages of volume consolidation:

Price

Transportation costs are reduced, which lowers expenses for both businesses and consumers.

Speed

More agile warehouse and transportation processes pay off. In the case of InPost's service, this speed is helped by the use of well-studied and optimized routes, as well as the fact that transport can be carried out at less congested times.

Customer experience

Fewer separate transport processes mean a simpler and more convenient experience. Avoiding the typical complications of the “last mile” through InPost points also reduces potential problems – from traffic delays to address mistakes – contributing to a better experience.

Control

Dealing with a single large order instead of several small ones tends to make delivery times more predictable and increase the visibility and simplicity of the process. Just remember that only one tracking is needed to locate the various purchases.

Environmental impact

Fewer trips and fewer transport vehicles used result in a significant reduction in CO2 emissions, representing a more sustainable approach.

InPost: we optimize order consolidation in the last mile

Consolidation begins at the warehouse, when several products coming from the same sender are grouped into the same shipment. This is a first step that all stores that sell online should strive to ensure in their own operations.

InPost's activity expands this process to transportation, through a well-organized network of pickup points, avoiding unnecessary trips, reducing emissions, and increasing the efficiency of the delivery process.

All this in addition to the convenience, for the recipient, of being able to collect the package at the chosen location and at a convenient time, instead of having to wait at home for delivery.

Visit our page and learn more about how to optimize the way you receive and send packages.