Omnichannel fulfillment provider Stord has launched a vendor delivery consolidation program it said will reduce the cost and complexity for smaller merchants shipping into big box retailer distribution nodes.
Under the program, Atlanta-based Stord will arrange consolidated pickups from merchant locations and combine the freight for inbound truckload moves into a dedicated warehouse in Chicago. The goods will be held there until they are released to be delivered to the designated retailer’s appropriate fulfillment centers.
Merchants will share space aboard the same truck, and in some cases, on the same pallet, Stord said.
The aim of the service is to give merchants access to truckload rates that their volumes would otherwise not justify, said Sean Henry, Stord’s co-founder and CEO.
For growing brands, delivery consolidation fulfillment allows them to adopt new B2B partners without taking on excess freight costs for unused truck space while meeting individual retailers’ shipping requirements, the company said.
Participating brands can save up to 30% on transportation costs over typical LTL collect, or prepaid methods, Stord said in a statement.
The vendor consolidation model is not new. Henry said Stord already offers business-to-business, business-to-consumer and direct-to-consumer services and has added vendor consolidation as another service offering.