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What is transportation consolidation? How do consolidation strategies take advantage of the basic economic characteristics of...

What is transportation consolidation? How do consolidation strategies take advantage of the basic economic characteristics of transportation?

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Transportation consolidation is a service which the shipping company might offer in which many delivery are combined as one, hence reducing the cost involved.

It takes advantage of the basic economic characteristics by reducing the number of trips involved. Since each trip has some fixed costs and some variable costs, consolidating the shipments into one delivery reduces the cost drastically and benefits all the parties involved.

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