Definition of Pool Distribution
Pool Distribution is the distribution of product to numerous stores within a particular geographic region. This is a highly superior and cost effective alternative to the higher cost of LTL shipments. In some instances this could represent a 30%-70% savings vs. traditional LTL. Instead of LTL direct to store, product is shipped to regional terminals or DC’s in truckload quantities. There it is off loaded, then segregated and sorted by store and then reloaded on local delivery trucks for delivery to pool destinations. Pool Distribution reduces transit times, reduces claims and damages and allows for significant savings over LTL rates. Product is scanned off the trailer when first received at the pool terminal; products are scanned to pallets specified by store (carton count, weight, height, equipment specifications) and then reconciled after sort and segregation; then scanned into the store on delivery.
Contributing to the cost effectiveness of Pool Distribution over LTL includes: the number of pool points per pool (i.e. # of stores), volumes per store, weight per shipment, frequency of deliveries, and distance from store to pool point (terminal). Pool also allows for less overhead for store as all products for store would be contained to one shipment per day by appointment vs. numerous LTL shipments and not having control over the frequency of deliveries and when they arrive. In most cases this allows utilizing same driver each day so familiarity allows us to provide better service specific to each stores individual needs.