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Consolidation: What is it?

by
Patrick Greene


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] warehouses.

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 mike@morandist.com


Moran Distribution Centers facilities are located in city of Chicago area, Illinois, midwestern, United States.

Services include contract warehousing, public warehousing, pick n pack, distribution and consolidation, order fulfillment and parcel distribution. Specialty warehousing is provided for paper products, auto parts, retail, electronics and consumer products.


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