CPIM Practice Exam

What is the primary purpose of freight consolidation?

1. To ensure timely delivery of shipments

2. To obtain reduced costs or improved utilization of transportation

3. To minimize the use of multiple carriers

4. To increase the volume of shipments processed

The correct answer is: To obtain reduced costs or improved utilization of transportation

Freight consolidation primarily aims to optimize shipping costs and improve the utilization of transportation resources. By consolidating multiple shipments into a single load, businesses can achieve economies of scale, making transport more cost-effective. This practice reduces the overall transportation expenses per unit and ensures better usage of available cargo space. When shipments are combined, companies can negotiate better rates with carriers due to the increased volume of goods being shipped at one time. This consolidated approach minimizes empty miles traveled and maximizes the efficiency of transportation networks, further driving down costs. In this way, freight consolidation not only leads to reduced transportation expenses but also contributes to sustainability by lowering the carbon footprint associated with shipping activities. The other options, while they may reflect secondary benefits or related concepts, do not encapsulate the primary purpose of freight consolidation as effectively as the focus on cost reduction and improved transportation utilization.