Groupage

Groupage is a logistics process in which multiple small shipments from different suppliers are consolidated into a single shipment for carriage to a common destination. The term, derived from the French groupage, is commonly used in road freight and by freight forwarders or third-party logistics providers to achieve economies of scale for small or irregular consignments. Groupage is part of the broader practice of consolidation within supply chains and is often contrasted with full-truckload or direct shipments.

In practice, shipments are collected from various shippers at a consolidation hub or warehouse. They are labeled, sorted by final destination, and grouped into one or more consolidated loads. The consolidated shipment travels to a destination hub where it is deconsolidated for delivery to individual customers. Documentation typically includes a combined manifest, pallet or parcel lists, destination labels, and any required customs paperwork for international moves. Handling units may be pallets, cartons, or other standardized loads to maximize efficiency.

The approach offers several benefits, including lower transport costs per unit, higher vehicle utilization, and broader service coverage for small or irregular shipments. It can also reduce environmental impact per shipment by optimizing routes and reducing the number of partially filled vehicles. Limitations include potential longer transit times due to consolidation and handoffs, dependence on reliable coordination among multiple parties, and the need for effective tracking and quality control to prevent misrouting or damage.

Groupage is commonly integrated with other logistics services such as cross-docking, e-commerce fulfillment, and door-to-door delivery to enhance overall supply chain efficiency.