Combining small orders or shipments into one larger shipment to take advantage of transportation economies is called consolidation.
In transportation consolidation is the process where a carrier or a shipping company combines several smaller shipments into one full container. Thus, consolidation favors both the carrier and the shipper. In the case of the carrier, it helps to reduce the cost of shipment and to make delivery of goods quicker.
Consolidation allows you to perform quality control measures as soon as the product even reaches the warehouse, which in turn reduces the chances of losing time and control due to unforeseen problems with one's order.
Hence, consolidation by advantage of transportation, combines small shipments into one larger shipment.
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