Groupage. Shipping less, more often, will save you money
In our recent blog article Groupage vs. Full Container Load, we looked at the differences between these two global logistics services and the benefits associated to each of them. For the purposes of this article, we’ll focus on a specific example of how groupage shipping actually works in comparison to full load shipping.
So let’s imagine you sell two pallets of a specific wine each month to customers. To fulfil that demand you usually move one full load (20ft container) of ten pallets every five months. That’s a good idea isn’t it? One shipment planned and paid for spreads the cost of shipping per pallet and you have five months of stock stored locally for when you need it.
Why then should you consider groupage shipping two pallets, every four weeks instead? Sounds like more hassle, doesn’t it. But have you really looked at what it can do for your business, especially now with the state of the shipping industry?
Save yourself the warehousing costs
Two pallets take up far less space than ten pallets, which means they are costing you five times less to store them. You may not even need a warehouse at all for this quantity, depending on location and free space. You also might not need a temperature controlled facility, as some wines can be protected from the elements and thermal changes with Hillebrand’s pallet sized insulation liners.
Maybe something else to consider, is that whilst your pallets are in transit, they are effectively being ‘stored’ for free. Factoring in the journey time to your shipment planning will also help you manage the cost of your logistics supply chain
Respond to consumer trends quicker
By having two pallets in stock you can adapt your product range with your next two pallet order. You’ll not need to wait for the sale of ten pallets. This means you can offer your customers new labels or vintages faster, and not be forced to sell older stock at a reduced price to clear them out of the warehouse.
Spend your cash more freely
Shipping two pallets, as opposed to ten, requires far less capital to be invested up front. The cost of the product, shipping, taxes, VAT, storage etc. remains at your disposal and not tied up in stock waiting to be sold.
Hillebrand’s beverage only groupage services are operated at fixed shipping frequencies. Meaning, the flow of goods through your supply chain will be regular and ongoing. If you would want to “feel safer”, you may determine to place orders for 3 pallets instead of 2, the benefits of Groupage vs. full container do remain the same.