In 2021, the freight consolidation model saw an 11% increase, following a 7.6% drop the previous year. These figures testify to a growing interest in more sustainable transport options. Let's explore the benefits of groupage transport and its areas of application.

What is groupage transport and how does it work?

Groupage transport combines the products of several shippers into a single load. This mode, also known as consolidation or LTT (Less Than Truckload) in international trade, is often used when volumes are insufficient to fill a truck or container.

Carriers organize the available space between different shippers. Goods are often transported in crates, freight pallets or barrels.

Good to know: Groupage transport is particularly suitable when dispatch times are not critical. It's a flexible method for land, air and sea shipments, with distinct advantages for each mode of transport.

What are the advantages of groupage shipping?

When transport truck fill rates are not optimized, shippers lose money and increase their carbon footprint. Groupage transport helps limit various logistical losses, while boosting shipment yields and improving network quality.

Read also: what's the advantage ofmultimodal transport?

Optimizing service quality

By increasing the frequency of shipments, groupage transport speeds up delivery times while offering great flexibility. It is particularly beneficial for companies with limited volumes, giving them access to long-distance or international transport.

Example: An SME that regularly ships small quantities of goods can use groupage to ship its products faster and at lower cost, while gaining access to international markets.

Reduce associated costs

Groupage reduces operating costs by sharing transport costs between several shippers. This translates into savings on storage and optimized transport costs.

Good to know: Shared transport costs enable smaller companies to remain competitive by accessing high-quality transport services without incurring prohibitive costs.

Reducing carbon footprint

Thanks to groupage, trucks rarely run empty, which reduces pollution. This mode of transport reduces the number of vehicles on the road, thus cutting CO2 emissions.

In 2022, road shipments were responsible for 94.7% of pollutant emissions in the source transport sector. By using groupage and a fleet of electric vehicles, these emissions can be significantly reduced.

The role of TMS software in groupage transport

TMS (Transport Management System) software is crucial for managing transport operations, particularly in the groupage sector. It helps plan routes, manage interactions and optimize performance.

Good to know: A TMS equipped with advanced algorithms can calculate the shortest and most efficient routes, helping to reduce costs and improve delivery accuracy.

DiscoverD&fiGroupe's TMS software .

Integrate new technologies into the groupage routing process

Technological evolution is radically transforming the logistics sector, and groupage transport is no exception. New technological solutions are emerging, offering unique opportunities to optimize every stage of the routing process, from planning to delivery.

The Internet of Things (IoT)

The Internet of Things (IoT) plays a crucial role in the modernization of groupage transportation. By connecting the various elements of the logistics network, IoT enables goods to be tracked in real time. Each pallet, crate or barrel can be fitted with intelligent sensors that collect and transmit data on their location, temperature, humidity and other critical parameters.

Example: a food supplier using IoT can monitor the temperature of its perishable products throughout the journey, guaranteeing compliance with health standards. In the event of temperature variations, an automatic alert is sent, enabling rapid intervention to avoid losses.

Blockchain

Blockchain, a distributed ledger technology, is revolutionizing the way logistics transactions are managed, particularly in groupage transport. Thanks to its ability to securely and immutably record all transactions, blockchain offers total traceability of shipments.

Example: in international groupage transport, every step in the process - from collection to final delivery - can be recorded on a blockchain, making every movement transparent and verifiable by all stakeholders. This reduces the risk of fraud, errors or delays, and reinforces trust between shippers and receivers.

In the event of a dispute, blockchain provides irrefutable proof of transport conditions and goods integrity, simplifying dispute resolution and speeding up reimbursement or compensation processes.

Artificial intelligence (AI)

Artificial intelligence brings unprecedented analytical and predictive power to groupage transport. It can automate repetitive tasks and optimize the organization of storage space, but its applications go far beyond that:

• Route optimization: AI can analyze thousands of items of data in real time - such as weather conditions, road traffic or infrastructure status - to suggest the fastest and most economical routes. In the event of disruptions, it automatically readjusts routes to avoid delays.

• Forecasting needs: by analyzing demand trends, AI anticipates fluctuations in shipment volumes, enabling companies to better plan their resources and avoid stock-outs or overcapacity.

A company using AI to manage its groupage transport can, thanks to machine learning algorithms, predict seasonal peaks in demand and adapt its transport capacities accordingly, while reducing costs and delivery times.

Good to know: AI also helps to design an effective CSR strategy and reduce carbon footprints by optimizing vehicle use, minimizing empty runs and the associated CO2 emissions.

Groupage transport is a flexible, economical and environmentally-friendly solution for companies of all sizes. By optimizing costs, improving logistical efficiency and reducing carbon footprints, it represents an attractive alternative for meeting modern transport challenges.

Would you like to take advantage of the benefits of groupage transport for your company? DéfiGroupe, a supply chain expert, is at your disposal to help you optimize your logistics operations. Contact us today to discover our solutions tailored to your needs.