In many supply chains, operations run like clockwork – predictable, fast-paced and consistent. Vehicles are used frequently, trucks are full, routes are optimised, and costs are well controlled.
Effective companies will have cracked the code, using an optimal combination of dedicated and shared logistics resources to provide a good, reliable service to customers while keeping costs down. However, even in these stable environments, a familiar challenge can emerge. A long tail of customers or products can disrupt regular rhythms. Smaller, more frequent orders, slower moving or premium stocking keeping units (SKUs), or broader product ranges can quickly lead to domino effects, creating new logistics challenges as customer ordering behaviour changes.
The goal remains the same: to protect service levels and keep unit costs under control. Yet as order patterns and frequencies change, filling a truck can become increasingly difficult or inefficient.
Where LTL fits and where it falls short
This is where less-than-truckload (LTL) deliveries come in. LTL is a necessary part of most supply chains, where companies ship smaller quantities of goods more frequently, without waiting for full truck loads (FTLs). The goal is to uphold high service levels – particularly for long-tail products or smaller customers.
LTL can often account for around 25% to 50% of consignments delivered, but can be as high as 80% if a large portion of deliveries are made to individual customers. The table below shows the profile of a bwd FMCG customer with a high proportion of LTL deliveries:
Type
Consignments
% Consignments
Customers
LTL
6,642
67%
238
FTL
3,182
33%
28
LTL has its benefits. It allows businesses to move part loads without paying for unused space, for example. However, it also comes with compromises. Deliveries are numerous and scattered, making them operationally awkward and expensive, with firms left managing more customers, more handling requirements, longer transit times, multiple touch points, and often, higher costs per delivery.
Groupage and pallet networks can provide a solution for very small orders by consolidating multiple small shipments from different customers into one larger load. However, that can mean aligning with existing routes, hubs and schedules, which can be tricky when volumes are low or irregular.
Full truckloads (FTL) cover the opposite end of the spectrum, while LTL sits somewhere in between. In theory, it means LTL is a good compromise. Yet, often, it becomes the most awkward part of the operation, with complex coordination and routing and high per-unit delivery costs.
The usual fixes and why they’re not always enough
One common solution to the challenges of LTL is to place stock into shared user warehouses. This can allow different companies with similar profiles pool volumes and consolidate outbound loads. But it’s a model that’s by no means perfect.
The warehouse may not be in a location that logically aligns with your inbound supply or customer base, for example. Service compromises can also creep in, with competing priorities between users leading to limited flexibility. And, often, the logistics provider benefits most from the combined transport saving, not you.
A smarter way to handle LTL
1. Start with your own data
Most businesses have more potential for internal consolidation than they realise. With the right planning systems and enough visibility, LTL orders can be grouped into multi-drop runs or routed more intelligently. This gets you closer to full-load economics using only your own order profile.
This kind of planning doesn’t need to affect your customer’s experience, but it does drive down the cost-to-serve.
2. Incentivise customers to order in higher volumes or on specific days
Using commercial tools to influence behaviour can lead to better consolidation. Marketing efforts and clear communication around delivery costs and thresholds can help to shape more efficient ordering patterns. Done well, this creates mutual benefit without pushing customers away.
3. Tap into the scale of your transport partner
At bwd, we take a network view. If two of our customers are shipping partial loads in the same region, we can combine collections. One half load might be picked up from a manufacturer in the morning. A second half load collected nearby shortly after. Both are delivered together.
This creates full-load performance without a dedicated vehicle. It requires careful planning underpinned by good visibility and responsive systems, but it gives you the best of both worlds – flexible, low-volume collections with efficient delivery.
The bwd way: practical solutions for LTL
At Barron Wood Distribution, we solve LTL challenges by combining three things:
- Smart planning tools that uncover for hidden efficiencies
- Commercial frameworks that support more favourable customer behaviours
- A transport network that actively combines compatible customer volumes
This approach helps reduce logistics costs, improve environmental performance and protect service levels. It works across both stable, high-throughput supply chains and more complex, fragmented ones.
Let's fix your LTL problem
If your supply chain is feeling the strain from smaller orders, niche products or complex demand patterns, we can help.
Speak to the team at bwd to explore smarter, more sustainable ways to manage your part loads and get more value from your transport operation.