Strategically, you consolidate your freight into larger quantities so you can get the lower TL rate. There are two main types of consolidation: vehicle consolidation and temporal consolidation. Vehicle consolidation combines LTL shipments from various sources together into TL quantities so you can qualify for the lower TL rates." Ship Direct Manufacturer A Customer C D D "Correct," agreed Patrachalski. "ConSort can either use a ship direct model where our four manufacturers ship LTL directly to our customer and we pay the higher LTL freight charges, or we could switch to vehicle consolidation where the four manufacturers ship LTL to our distribution center at our expense and we combine these items into consolidated TL shipments to our customer. Not only would we be able to reduce dock congestion for our customer but we may also be able to reduce transportation costs." As long as we can efficiently run our distribution center, cautioned Ferguson, "our distribution center costs run $3.60 per 1,000 pounds handled." As long as we can efficiently run our distribution center, cautioned Ferguson, our stribution center costs run $3.60 per 1,000 pounds handled. Vehicle Consolidation Manufacturer LTL A LTL B| DC Customer TL CM LTL D| LTL Jason, I want you to take a look at our data (Figure 1) and complete an analysis comparing e ship direct model and vehicle consolidation over 52 weeks of shipping, stated Patrachalski oking at Ferguson who was nodding his approval. Quantify a recommendation about the lowest ost strategy. And don't forget to include our distribution center costs!" ConSort, Inc.: Utilizing Consolidation to Lower Transportation Costs Manufacturer A B C Shipping Weight (lbs) each week 10,000 8,000 15,000 7,000 LTL Rate Manufacturer to Customer (per CWT) $2.00 $1.80 $3.40 $1.60 LTL Rate Manufacturer to DC (per CWT) $0.75 $0.60 $1.20 $0.50 TL Rate DC to Customer (per CWT) $1.00 $1.00 $1.00 $1.00 D Figure 1: ConSort Manufacturer Rates and Weights Q#1: If we use the ship direct model, using the data from Figure 1, what are our total costs over a 52-week period? $ Strategically, you consolidate your freight into larger quantities so you can get the lower TL rate. There are two main types of consolidation: vehicle consolidation and temporal consolidation. Vehicle consolidation combines LTL shipments from various sources together into TL quantities so you can qualify for the lower TL rates." Ship Direct Manufacturer A Customer C D D "Correct," agreed Patrachalski. "ConSort can either use a ship direct model where our four manufacturers ship LTL directly to our customer and we pay the higher LTL freight charges, or we could switch to vehicle consolidation where the four manufacturers ship LTL to our distribution center at our expense and we combine these items into consolidated TL shipments to our customer. Not only would we be able to reduce dock congestion for our customer but we may also be able to reduce transportation costs." As long as we can efficiently run our distribution center, cautioned Ferguson, "our distribution center costs run $3.60 per 1,000 pounds handled." As long as we can efficiently run our distribution center, cautioned Ferguson, our stribution center costs run $3.60 per 1,000 pounds handled. Vehicle Consolidation Manufacturer LTL A LTL B| DC Customer TL CM LTL D| LTL Jason, I want you to take a look at our data (Figure 1) and complete an analysis comparing e ship direct model and vehicle consolidation over 52 weeks of shipping, stated Patrachalski oking at Ferguson who was nodding his approval. Quantify a recommendation about the lowest ost strategy. And don't forget to include our distribution center costs!" ConSort, Inc.: Utilizing Consolidation to Lower Transportation Costs Manufacturer A B C Shipping Weight (lbs) each week 10,000 8,000 15,000 7,000 LTL Rate Manufacturer to Customer (per CWT) $2.00 $1.80 $3.40 $1.60 LTL Rate Manufacturer to DC (per CWT) $0.75 $0.60 $1.20 $0.50 TL Rate DC to Customer (per CWT) $1.00 $1.00 $1.00 $1.00 D Figure 1: ConSort Manufacturer Rates and Weights Q#1: If we use the ship direct model, using the data from Figure 1, what are our total costs over a 52-week period? $
