How a Consolidation Warehouse Can Improve Your Supply Chain

a distribution warehouse with high shelves and a forklift

Source: hacohob/

If you’re looking to speed up the shipping and transportation process, a consolidation warehouse might be just what you’ve been looking for. These facilities package goods together before they make their way to the same destination. There are several benefits to adding consolidation warehouses to your supply chain. Learn about the rise of this new type of facility and how it can help you reach your goals.

What Is a Consolidation Warehouse?

Consolidation warehouses are typically used by wholesalers and resellers when sending goods to geographically similar locations. This warehouse typically sits in between the producer or manufacturer of the goods and the final retail destination. Miscellaneous goods all making their way to the same destination will arrive at the consolidation warehouse, where they are then packaged together before heading out to the retailer.

This method only works if the goods are being delivered to roughly the same location. The shipment will be dropped off in bulk. The store will then be responsible for breaking up the shipment into individual packages and goods that can be sold to consumers.

Shipping in bulk is always the best way to move goods through the supply chain. Workers can move large quantities of goods using a lift truck or forklift in just a matter of minutes. The consolidation warehouse is also in charge of preparing the goods for shipment, so everything fits together as tightly as possible. The more goods per package, the less the company has to spend per item.

The consolidation warehouse should have a convenient location so goods don’t have to go out of their way while being repackaged. The facility needs to have fast access to major retailers and suppliers. It should also be close to major throughways, airports and other transportation options.

a warehouse full of cargo

Source: Rifanza/

What Are the Benefits of Consolidating Inventory?

Companies can save money by shipping their products in bulk. It is always cheaper to ship one large container than shipping dozens of smaller boxes. It’s also a great way to reduce fuel consumption and energy pollution

Consolidation warehouses tend to ship products more frequently than traditional storage facilities because they have more than one client and are close to numerous retail outlets. This is a great way to keep your customers and business partners happy. 

These warehouses also require less space than traditional facilities. They rely on incoming inventory when fulfilling orders, rather than pulling from products on the shelf, but they still have excess space for holding onto additional inventory. This helps the supply chain stay lean and flexible as inventory levels rise and fall.
Consolidation Warehouse or Not, Utilize the Industrial Pallet Container

Other Ways to Improve Efficiency 

Regardless of whether you want to create a consolidation warehouse, we can all learn something from these lean, highly efficient facilities. 

To start, it’s always best to store goods in a pallet container when shipping in bulk. These containers are designed to be loaded onto a pallet for more stability and easy handling. The driver can use a forklift to quickly move thousands of items at once. These containers also reduce waste in the supply chain. Fill every container to the brim to limit empty space. This will limit your dependence on foam inserts, plastic packing peanuts and other disposable shipping products. Pallet containers are reusable, helping your company save money with every trip.

an industrial container yard

Source: jeandum/

Consolidation warehouses often use metal bins and industrial containers to send large quantities of goods overseas. These are some of the most reliable shipping containers money can buy. They are designed for long-term travel with plenty of room for different types of smaller containers. Metal bins can stand up to rain, snow and crashing waves on the open ocean. It’s the fastest way to give yourself some much-needed peace of mind when sending your goods overseas. 

Want to Know How to Start a Warehouse Business? Learn More Here!

The warehouse business is changing fast. Companies are looking to add new consolidation and distribution centers to their existing supply chain. Now is a great time to get started in the industry. Learn how to start a warehouse business, so you can make the most of your new facility or drop-off location.

Your facility should be close to areas with high consumer demand; otherwise, it wouldn’t make sense for companies to send their goods there. Look for possible real estate just outside of major cities where the land tends to be cheaper, but make sure you’re still close to the stores that matter.

Consolidation warehouses are changing the nature of the supply chain. Consider setting up an additional facility today to keep your goods moving at peak efficiency.