Groupage Shipment
A groupage shipment, also known as Less-than-Container Load (LCL), is a logistics method where multiple small shipments from different customers are consolidated into a single container. Managed within the ERP, this process enables freight forwarders to maximize container space and reduce transportation costs. Groupage is ideal for clients with smaller cargo volumes and helps optimize routing, documentation, and cost-sharing across multiple shippers.
How Groupage Shipment Works in Logistics?
In the ERP, individual shipment bookings with compatible destinations are combined into a groupage job or master consolidation. Each sub-job retains its own cargo and customer details but shares a common container and transport leg. The ERP handles container planning, cargo allocation, documentation like master and house bills, and cost apportionment based on volume or weight.
Functional Advantages in Logistics Operations
Cost Efficiency for Clients
By combining shipments, logistics providers reduce per-unit transport costs for clients who don’t need a full container. The ERP calculates accurate cost-sharing across all parties.
Optimized Container Utilization
Groupage planning in ERP helps maximize available container space. This reduces space, lowers emissions, and improves profitability for forwarders.
Simplified Documentation Handling
The system generates master and house bills of lading automatically, linking each shipper’s cargo to the groupage container. This ensures clear traceability and easier customs clearance.
Simplified Billing and Cost Allocation
ERP modules divide container costs proportionally across the sub-jobs using pre-set rules. Finance teams can generate invoices without manually splitting charges.
Visibility and Exception Tracking
Each shipment in a groupage job is tracked individually for events like customs holds or delivery. The ERP separates milestones while maintaining container-level control.
Conclusion
Groupage shipment is a cost-effective solution for small-volume cargo and a critical feature in any freight ERP. It simplifies container planning, improves load efficiency, and provides financial clarity across multiple clients. For forwarders managing diverse shipments, groupage tools within ERP deliver the control and automation needed for reliable, scalable operations.