Reduce Your Logistics Costs with Retail Consolidation

Brand and retail profit margins are constantly under pressure. A good logistics provider will help you reduce costs through best-in-class retail consolidation services.

Brands and retailers often have very thin profit margins. That means they need to squeeze every bit of value out of their operations. Retail logistics is one area that can help to reduce costs, in particular Retail Consolidation Services (RCS). The right RCS approach will help your brand to lower expenses, increase profits, and boost the bottom line.


We'll show you how.

Key takeaways


  • RCS lowers the number of trucks, drivers, and other assets needed to get your products to retailers—leading to a significant cost reduction
  • Retailers will fine brands and vendors that do not meet their requirements—retail consolidators specialize in compliance to eliminate penalties
  • RCS providers will use their size and influence to negotiate lower rates and impress retailers—passing the benefits on to you
  • Large 3PLs often provide RCS as part of integrated, end-to-end supply chain services—saving you money at every step

RCS reduces the number of trucks on the road and the expenses to run them

One of the main aims of RCS is to consolidate shipments together, which helps to reduce costs. The way this works is:


  1. Various suppliers, vendors, and brands will send their products to a retail consolidation center.
  2. These products will typically be sent as multiple Less-Than-Truckload (LTL) shipments.
  3. The consolidation center will take all of these LTL shipments and combine them together.
  4. This creates one Full Truckload (FTL) that is going to a specific retailer.
  5. Instead of a retailer receiving multiple LTLs, they receive one FTL.


This all results in fewer trucks on the road and a substantial cost reduction.

RCS optimizes routes so that journeys are more efficient and cost effective

Route optimization creates more efficient ways for drivers to deliver, which lowers transportation costs. 3PL providers use sophisticated route modeling software to identify the quickest and most effective ways that trucks can reach retail distribution centers and stores. Less time on the road results in fewer driver hours, and lowers costs for drivers, trucks, and other assets

RCS helps you to avoid fines caused by missed on-time, in-full deliveries

Retailers have very strict standards for the orders they want fulfilled and when those products need to be delivered. These requirements are measured through the On-Time, In-Full (OTIF) delivery KPI. Brands that miss their OTIF commitments can be fined by retailers. Retail consolidators work with brands and retailers to develop programs that maximize successful OTIF deliveries. This helps suppliers to avoid OTIF fines that can damage profit margins.

LTL vs FTL Truckloads

RCS helps you to avoid other retailer penalties

Retailers have several other requirements from brands in addition to OTIF commitments. These can include:


  • Using the right packaging
  • Labeling products in a particular way
  • Special loading and unloading needs
  • Integration with their systems


Vendors who do not meet these requirements may have other penalties raised against them. A good retail consolidator will understand any potential issues and audit products and shipments to ensure they meet all retailer requirements. 

Consistent deliveries can help impress retailers and increase shelf space

Many factors go into a retailer allocating shelf space. This includes price, profit margins, competitors, exclusivity deals, and several other factors. One area that's often overlooked is how brands deliver products to retailers. Reducing the hassle of shipments and delivering on-time, in-full all can enhance a brand's reputation and helps to increase that precious shelf space.

Larger RCS providers can negotiate lower carrier rates

Large RCS providers will negotiate preferred rates with carriers due to economies of scale, and pass those benefits on to you. Many consolidators have in-depth relationships with large networks of carriers, so they can choose the optimal trucking businesses to work with you and keep costs down. 

Big Box Retail Consolidation

RCS challenges incorrect retailer fines to reduce the impact on your finances

Retailers are not perfect, and they might sometimes fine you due to a misunderstanding or not correctly measuring a particular KPI. Your RCS provider can push back on these types of fines and get some of them reduced or removed. 

RCS integrates with other logistics services to save you money across the supply chain

Some third-party logistics providers offer RCS as part of a wider range of retail supply chain services. These services can include:


  • Ocean and air freight forwarding
  • Customs clearance and foreign trade services
  • Pallet, parcel, multimodal, ground, and other transport solutions
  • Warehousing and contract logistics
  • eCommerce and omnichannel fulfillment
  • Value-added services


Bringing everything under one 3PL means fewer handoffs, a central point of contact, economies of scale, and lower costs. 

How GEODIS can help

GEODIS is one of the biggest retail logistics and RCS providers in the U.S. and around the world. Here's what you can expect when you work with us:


  • A leading on-time, in-full rate of 98%
  • Strategically located warehouses and distribution centers throughout the U.S.
  • Reach 99.5% of the continental U.S. in two days or fewer
  • Emissions reduction of up to 13% through shipment consolidation
  • Strong relationships with major big-box retailers
  • A wide and deep national, regional, and local carrier network
  • Best-in-class retail consolidation services
  • Standard operating procedures to meet retailer guidelines
  • Complete quality control and auditing of all retail shipments and products
  • Integration with the full range of transportation, warehousing, and freight forwarding GEODIS services
  • Real-time visibility throughout the supply chain

Delight retailers by choosing GEODIS as your 3PL partner. Get in touch with us to discover how we can optimize your retail operations to lower costs, boost profit margins, and enhance your retailer deliveries.