Benefits of consolidating distribution centers from dating to serious

The trend is particularly evident among companies seek to rationalize their existing footprint of activities or to optimize efficiency.

Here are some general benefits of warehouse consolidation to owners and occupiers in the Cape Town industrial real estate market: Companies who prefer a hands-on approach to operations generally benefit from greater overall efficiency when combining their various activities under one roof.

Inefficient processes associated with outsourced warehouse operations are also eliminated, which results in a better overall management of the product.

Read more about Somfy Group’s Warehouse Consolidation Strategy by clicking here.

In practical terms, this means it is often to shippers’ advantage to combine shipments (consolidate) whenever possible to get a higher total volume, which will, in turn, lower overall transportation expenditures.

While saving money is the largest benefit of freight consolidation, there are many other positives tied to the practice: In today’s market conditions, considering a consolidation solution is more necessary than it was a few years ago.

Retailers are requiring smaller but more frequent orders.

March 30, 2017There is a core principle behind shipping costs; as volume goes up, per unit shipping costs go down.

An artist impression of the new premium mixed-use development Richmond Park by Atterbury along the N7 in Cape Town.

Tenants and logistics operators are increasingly finding value in consolidating their operations, with similar trends evident in the Gauteng property market.

Unfortunately for emerging brands and small- to mid-sized companies, having large enough pallet quantities isn’t always possible.

If you work with a specialized 3PL, they can potentially combine your LTL orders with those from other like clients.

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