The Indian logistics industry is remarkably worth around USD 160 billion and is likely to touch USD 215 billion in the next two years, as per the Economic Survey 2017-2018. With the implementation of GST, the Indian logistics market is growing at a CAGR of 10.5 per cent, and interestingly provides employment to more than 22 million people in the country.
No matter what the size of your business is, logistics is an essential element of your day-to-day operations. It enables you to leverage your existing supply chain more efficiently. Efficient logistics and transportation can help you cut costs and the same time create time and resources utilities.
With the varied shipping methods available, it sometimes becomes troublesome for companies in selecting the best option based on their requirement. For most on road shippers, truckload shipping will be an ideal choice to move their cargo from one point to another, owing to its flexibility and affordability. There are two methods of truckload shipping available – Full Truckload VS Less-Than-Truckload
FTL and LTL shipping is different in many key aspects, and therefore its pivotal to understand the differences which will help you make the most ideal choice. Here is a basic primer on the differences between FTL and LTL shipping.
FTL shipping stands for full truckload, i.e the shipment will take up an entire truck by itself. It is feasible when your freight can fill up a truck and has one stop destination. FTL shipments are mostly used when there are 10+ palettes that needs to shipped. LTL shipping on the other hand, stands for less than truckload, meaning that the shipment will not take up an entire truck. These types of shipments typically weigh between 100 and 10,000 pounds.
Full Truckload VS Less-Than-Truckload
It becomes an easy choice to pick FTL when you have large shipments. However, sometimes smaller shipments can also benefit from FTL freight shipping. For instance, If your shipment is high-risk, FTL may be a better option.
Another advantage is that FTL shipments are intact in a primary truck during transit and is not transferred, thereby lowering the risk of loss by damage. This method of transportation is quicker than LTL, as only one shipment is on board and there would not be multiple stops along the way.
Going ahead with an LTL shipment, you only pay for the used space of the truck. For example, if your shipment occupies one-third of the space on the truck, you only pay for that one-third space. The rest of the truck will be loaded with shipments from other different companies, making LTL freight shipping a great choice for small businesses. However, the transit time of LTL freight shipments will often be long due to the multiple shipments and frequent stops. If time is one of the key essence, you may want to consider FTL shipping.
SuperProcure personally believes that although FTL does cost more than LTL shipping methods, it comes with a plethora of benefits for the shipper. As mentioned above the shipper will not have to share truck space with another company, the truck can move directly to its destination without additional stops, creating a much more reliable shipping timeframe than LTL can offer. The initial financial cost for FTL shipping becomes more relevant when you compare it to the cost of breaking up your shipment into smaller units for LTL shipments. This makes FTL shipping an economical and reliable choice for shippers to process bulk shipments quickly.
We should not forget that time is money, and if your product sits in the back of an LTL van for several days, your consumers will flock to your competitors. Shippers should leverage full truckload shipping to ship LTL shipments in the back of a full-size van or trailer. How? Well, it boils down to know when should you put two and two to make four, with four being full truckload and two being an LTL shipment.
It makes sense to turn to the logistics and supply chain management solutions we currently have to maximize your buying power. Set up a demo with us.