Consolidation: What is it?
Consolidation services from warehousing companies, particularly in Chicago, Illinois can help lower the
business expenses of your company. The idea of consolidation warehousing is to simplify the supply chain
as well as reduce business expenditures. This is done by manufacturers moving away from using multiple
warehouses as storage facilities and combining their inventories with other producers in huge warehouses
that take the place of internal distribution centers or third party logistics providers. Without
consolidation, manufacturers place their products into corporate distribution centers or individual
public warehouses; instead of have multiple manufacturers combine their products into a few [consolidated]
The benefit of using a consolidation warehouse in the Chicagoland area is they can distribute multiple
products to multiple retailers. With a consolidation warehouse in Chicago serving multiple retailers,
manufacturers are able to ship full truckloads, either of truckloads of a single product to the warehouse
or multiple products. In this case, the need to deliver to distribution centers can be eliminated and
products can be shipped directly to stores in Midwestern markets, further cutting costs and shortening
the supply chain. In the long run, manufacturers will be able to cut production costs and in turn cut
consumer costs, while maintaining demand. This will allow manufacturers to be able to better predict
demand and make more accurate production schedules. In addition, with a smoother production schedule,
manufacturers may be able to ship more goods directly rather than having to rely on outside storage or
internal distribution centers. This should allow increased consolidation of outbound freightin
lower-rated truckloads along with reduced transportation costs for unloading partial shipments and waiting
time at customer docks.
Not only does this benefit the manufacturer, but also the wholesaler receiving the products because they
can have a more balanced stock of goods from the beginning to end of the quarter. Also, inventory gets
moved in and out quicker rather than sitting for extended periods of time.
Consolidation warehousing has many benefits in the Chicago, IL area that span from the manufacturer
to the consumer. Utilizing companies that offer this service can help lower costs and shorten the
supply chain. For the retailers that receive these products, inventory turn-over also shorten.
All aspects of the consumer market can benefit from using consolidation.
For additional information on “Consolidation: What is it?” contact us at www.publicwarehousing
chicago.com or firstname.lastname@example.org
Moran Distribution Centers facilities are located in city of Chicago area, Illinois, midwestern,
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