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Blended LTL and Parcel Shipping Services

December 8, 2019
5 min read
Less Than Truckload
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isle of boxes on pallets in a warehouse

Today’s shipping landscape looks a lot different than it did a decade ago, but many businesses are still using the same shipping methods they’ve always used. If it’s 150lbs or heavier, a shipment goes LTL. If it’s under 150lbs, a shipment goes parcel. As consumers increasingly shop online for items of all shapes and sizes, shipping companies and 3PL’s are working to meet demand by increasing their efficiency through the use of automation. And that has a huge benefit to those using commercial shipping and 3PL services.

How to use LTL to Your Advantage When Shipping Parcel

Many retailers have traditionally shipped directly from the manufacturer to the buyer or from the manufacturer to the retail store. But what if that’s really the least efficient way to go? When retailers had only one store in a region, this was the obvious choice. But in today’s world, multiple locations, and multiple at-home buyers in the same region can make this shipping model inefficient and unnecessarily costly.

Some retailers are changing their shipping model to add a warehouse or distribution facility in a central location to take advantage of freight and less-than-load (LTL) shipping. In this scenario, the product is shipped in a larger bundle from manufacturer to warehouse, and then split into smaller shipments or parcels, where they can be distributed for a huge cost-savings using local shipping services. Many 3PL’s add value to this model by offering both LTL and public warehousing services.

Why use LTL and Parcel Shipping Combined?

By bundling multiple parcels for a long journey and utilizing parcel shipping for the local journey, shippers get to take advantage of LTL and freight shipping pricing and reliability. Freight shipping and LTL shipments are bundled together and are less susceptible to theft, damage, or loss, than singular parcels–which makes this type of shipping a cost saving and risk mitigation tool.

In addition, by using LTL and freight shipping services through a third-party logistics company like Amware, you also get the convenience of intelligent software that can bring transparency to your shipping and logistics operation. Shippers can see when a shipment left the manufacturing facility, when it arrived at the warehouse or distribution center, and then also get auditing, pricing, and customized reporting along the way.

What are the Benefits of Shipping LTL?

Aside from the benefits of using a third-party logistics provider, shipping LTL can gain a huge cost savings for shippers. Parcels are priced based on weight, dimensions, and value of the parcel. While LTL shipments are priced the same, they’re offered at a steep discount compared to per-parcel shipping.

In addition to the cost benefit and the convenience of bulk shipping, LTL can also help reduce your environmental footprint compared to a traditional manufacturer-to-buyer model. Instead of potentially ten trucks delivering ten separate parcels over say, 1,500 miles, one truck will move them 1,475 miles, and then they’ll be delivered to each location. In this respect, LTL is a great option for environmentally conscious shippers.

Want to learn more about blended LTL and parcel shipping services? Contact the team at Amware to find out how Amrate could cut your shipping costs, or download a free trial below:

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