What is Pool Distribution? Everything You Need to Know | DTS

For any business transporting goods across the country or beyond, pool distribution can be a valuable shipping solution. This method allows companies of all sizes to transport freight cost-effectively and conveniently. But what is pool distribution, how does it work, and what benefits does it offer?

In this post, we’ll answer these key questions to help you understand why pool distribution could help your business improve your shipping strategy. 

What is pool distribution?

Pool distribution is a shipping method similar to less-than-truckload (LTL) shipping. Both methods involve combining multiple shipments into a single truckload for transportation to similar locations. 

However, pool distribution combines multiple shipments from just one company, while LTL combines shipments from different companies. Pool distribution allows you to “pool” shipments together when transporting goods to the same geographic region but different end destinations. You can then deliver goods to several addresses in one wider area. 

How does pool distribution work?

Pool distribution consists of the following steps:

• Pool consolidation: Shipments are pooled together and consolidated at the shipper’s distribution center. Consolidating shipments can be complex because you need to plan everything from delivery schedules to different drivers to ensure smooth shipping. You might want to work with an experienced logistics company to reduce the risk of oversights and delays that ultimately disrupt the delivery process.

• Sorting: Shipments are organized based on their destinations and, then loaded onto the truck carefully to make the best use of available space. They will be stacked floor to ceiling to avoid any wasted room. Depending on the truck's size, numerous large loads may fit comfortably into one vehicle, eliminating the need for multiple drivers. 

• Transportation: The truck drives to the relevant geographic region, usually to a specific pool point. 

• Pool distribution: Individual shipments are offloaded at the pool point (or distribution center) and prepared to move on to the next stage of their journey. They are scanned and organized according to their final destinations. 

• Final delivery: All individual shipments are sent to their destinations on local delivery trucks and vans. If transportation has been planned and coordinated effectively, shipments will reach their destinations safely and on time. 

5 benefits of pool distribution

Pool distribution offers companies some great benefits, including:

Improved transit times

While some deliveries are more urgent than others, all freight should be shipped as efficiently as possible. Reducing the amount of time retailers, customers, and other parties spend waiting for items to arrive means you can improve customer loyalty and brand reputation. 

Choosing the right shipping method can improve your transit times, and that’s where pool distribution shines. Trucks generally make fewer stops along the way, and goods should get to their destinations in less time. Other transportation methods may include several stops, which can considerably slow the shipping process. 

Increased sustainability

Finding sustainable solutions is vital to reducing your carbon footprint, and this type of method can help. 

How? Pooling shipments together onto one truck for a large part of the transportation process reduces the number of heavy-duty vehicles on the road, leading to fewer carbon emissions. Even if it seems like a small change, choosing more sustainable shipping options adds up over time and sends the message to your customers that you’re finding ways to make a difference to the environment.

A more cost-effective solution

Even the biggest businesses need to save money where they can, and this method can be a great, cost-effective shipping option. 

When different shipments are headed for the same geographic region, transporting them all (or as many as possible) together for a large part of the route is cheaper than sending them all separately from the start. 

Better visibility into shipping

Tracking your shipments is easier with this than with some alternative methods, as they make fewer stops. That’s helpful for developing a better insight into your supply chain and overall delivery process. 

Easier to put into action

If you’re concerned about switching to this method because it appears complex, don’t worry: it’s more straightforward than you might expect. Crucially, costs are typically calculated according to miles and weight, making it simpler than some alternatives. 

Learn more about different freight methods

Pool distribution is a cost-effective, efficient, and simple shipping solution for your business. But if you’re curious about alternatives, you can learn more about different freight shipping methods on the DTS blog. 

DTS is a shipping logistics company with more than 30 years of experience. We’re here to help simplify your freight transportation. If you want to discuss finding an easier approach to shipping for your business, get in touch with DTS today.