What is Pool Distribution?

The pooling concept of shipping is all about the efficient use of resources. In the past, many shipments were sent to the same geographic region on separate trucks. Today, we understand that we can improve on that.

The main problem is what we call less-than-truckloads, or LTL. Traditional LTL shipments always cost more and are harder on the supply chain. LTL rates are higher because they use more fuel and require more vehicle resources. 

Pool distribution services take those LTL shipments and combine them on fewer trucks. Then, the shipments are delivered to single-source regional terminals called pool points. The products are sorted and segregated by the pool operators according to their destinations. Finally, the goods are loaded onto local delivery trucks for delivery to their final destinations.

The pooling concept has been embraced by many industries as a more efficient use of transportation resources.