Deconsolidation

Posted in Operations and Supply Chain Terms, Total Reads: 303
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Definition: Deconsolidation

The process of breaking down a single shipment of cargo into numerous smaller, manageable shipments and processing of these shipments for delivery from the port warehouse to their destined distribution centre is known as deconsolidation.


This process forms a pivotal part of the distribution process as it eases out the process of delivery of freight to a wide array of locations at minimal cost. Deconsolidation reduces inland transportation costs by easing the loading-off of containerized import shipments to domestic transportation locations.

 

Benefits of deconsolidation include better inventory management, reduced costs, and faster speed-to-market. It enables retailers and manufacturers to move their distribution closer to customer demand and reduce inventory and facility costs.  

It improves a manufacturer’s total cycle time. Imported merchandise can be easily managed in a just-in-time scenario, eliminating the need for excess stock, saving re-handling time, and minimizing points of distribution.

 

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