Papers

Pool Distribution: The Forgotten Mode?

Shippers are giving pool distribution a second look thanks to today’s third generation TMS, which is more powerful, flexible, and sophisticated than prior generation products. By 3Gtms

July 13, 2017

If you are moving freight between regions, shipping a high volume of less-than-truckload (LTL) shipments between regions, or looking for ways to save money on longer freight moves, then you’ve probably considered pool distribution as a viable option.

Based on the perceived difficulties associated with the shipping approach, you likely turned to a different shipping strategy to fulfill your needs.

After all, pool distribution has historically presented some stumbling blocks for shippers looking to leverage this strategy.

If you’ve never considered pool distribution, it’s time to give it a second look.

Thanks to full-featured, modern transportation management systems (TMS), companies are rethinking how they look at pool distribution and reaping the rewards of this oftenmisunderstood shipping tactic.

Over the next few pages we’ll explore the historical challenges associated with pool distribution, explain how shippers of all sizes can leverage this shipping strategy, and show how one major manufacturer has successfully combined a full-featured, modern TMS with an effective pool distribution approach.

The Forgotten Mode

Defined as the consolidation of freight going into a region, and then using a local delivery company to handle the final delivery, pool distribution fulfills a need in an era where shipments can be as small as a single package or as large as a full truckload.

Somewhere in between those two endpoints lies a gap that most shippers fill by using LTL freight options.

Once those LTL shipments reach a certain level of volume and frequency, it makes sense to explore other, more affordable options.

That’s where pool distribution enters the picture.


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