Flow massification consists of grouping several orders, shipments or replenishments into larger volumes, a full pallet, a full truck, rather than handling them in small, scattered quantities. The goal is to reduce the number of transport and handling movements, improve vehicle fill rates and lower the logistics cost per unit transported.
How massification works
Massification can apply at several levels of the logistics chain. Upstream, a principal can consolidate its supplier orders to favor full trucks (FTL) rather than fragmented shipments via messenger transport. Downstream, a distributor can consolidate orders from several outlets in the same geographic area before shipping them in a single run, or massify several small deliveries at a hub before onward shipment. In every case, the principle stays the same: replace a large number of small, scattered flows with a larger, and therefore more economically efficient, flow.
Massification has a downside: it requires waiting for a sufficient volume to accumulate before shipping, which can lengthen the time between order and delivery (lead time) and requires buffer storage space. A well-built transport plan therefore seeks a balance between the gains of massification and maintaining an acceptable service level for the end customer.
Massification differs from pooling: the former consolidates the flows belonging to a single company, the latter shares logistics resources with other players. The two logics are often combined in practice, notably via cross-docking or groupage carried out by a carrier.
FAQ
What is the difference between massification and pooling?
Massification consolidates the flows of a single company to better fill its own vehicles. Pooling shares transport or storage resources between several distinct companies. Both reduce costs and the number of trips, but they do not involve the same players.
What are the drawbacks of flow massification?
It requires waiting for a sufficient volume to accumulate before shipping, which can lengthen delivery lead time and requires buffer storage space. It also demands careful route planning and well-sized inventory so as not to degrade the customer service rate.
Related terms
Pooling · Milk run · Groupage · Chartering · Transport plan · Semi-trailer capacity · Cross-docking.
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