Order Consolidation

Order consolidation is the practice of grouping multiple orders – often from different purchase orders, customers, or warehouse locations – into fewer shipments. The goal is straightforward: move more freight on fewer trucks to lower per-unit shipping costs. For shippers managing dozens or hundreds of daily orders across overlapping delivery zones, consolidation is one of the most impactful cost levers available.

A typical consolidation workflow evaluates orders by destination region, delivery window, product compatibility (temperature requirements, hazmat restrictions), and available carrier capacity. The planner – or algorithm – determines which orders can share a truck without violating delivery commitments. This might mean combining three LTL shipments into a single full truckload, or batching next-day and two-day orders into a single delivery run with sequenced stops.

The cost savings from effective consolidation are significant. Shippers regularly report 15–30% reductions in truck counts on consolidated lanes, which translates directly to lower freight spend, fewer carrier pickups at the warehouse, and reduced dock congestion. The environmental impact is real too – fewer trucks means fewer emissions per unit shipped.

The challenge is computational complexity. As order volume grows, the number of possible consolidation combinations explodes. Manual consolidation – sorting orders in a spreadsheet and eyeballing which ones fit together – breaks down quickly. Algorithm-driven consolidation that factors in real-time pricing, contract rates, and shipping constraints is what makes this scalable.