Pay As You Go Consolidation
An Introduction to a different way for Consolidation Services
Traditional Consolidation Services
Typically, traditional consolidation facilities provide both a planned and reactive service to receive, hold and deliver to site, materials which may have been either intended for delivery to site as a part load or out-of-sequence due to supply chain / lead-in requirements.
Service levels range from simple materials receipt and delivery to pallet breakdown and order picking to defined pick-lists.
Clients and Contractors may also wish to utilise a local offsite facility for testing materials / mock-ups and prefabricating assemblies prior to delivery to site.
The benefits Consolidation can bring to a project include:
- Reduced quantity of deliveries to the Project
- Reduced instances of site traffic congestion in and around the Project
- Delivery ‘certainty’ for programme critical items
- Potential for ‘Reverse Logistics’ – vehicles returning to the Consolidation Centre with pallets and packaging taken from site
- Reduced incidence of unfamiliar drivers coming to the Project.
Off-site materials holding and load consolidation, typically grouped under the banner of ‘Consolidation’ is a scalable solution, which can be expanded and contracted to suit the peaks and troughs in demand throughout a project.
Pay as You Go Consolidation
The ‘Pay as You Go’ model was created to provide a far more cost effective option to construction projects where full consolidation is considered prohibitively expensive (when compared to the benefits delivered).
The potential materials delivery congestion can be managed out by effective supply chain and delivery management, combined with short term vehicle holding or short term materials storage.
Longer term storage may only be required for long lead-in items.
The key benefits of the Pay-as-You-Go model are:
- The use of professional storage facilities for long or short term storage, as and when it is required
- Charges are per pallet space / per week – so you only pay for what you use / when you use it
- Full in-house materials loading/off-loading and transportation services are also available
This solution is flexible enough to meet the changing needs of any project over its duration.
The costs of using the off-site facility and the associated commercial risk can also be mitigated through subcontract procurement.