A multi-level logistics system is generally required to ensure a flawless logistics chain and to meet the demand for goods and merchandise at several locations. In such a system, the so-called break bulk point stands for a point in the chain where large freight or consignments of goods are broken down and divided into several smaller partial or individual deliveries. Typically, such concepts are found within freight systems that are based on a multimodal or intermodal system.
Difference between break bulk point and consolidation point
The logistics concept looks different if the entire process is reversed and there is a point within the chain where individual partial deliveries are combined and put together to form a larger freight unit. At the consolidation point, a concentration point is created, i.e. the flow of supply is interrupted and, if necessary, the goods are consolidated. Additional storage capacities or organizational steps are necessary.
Important: In some situations, it can make sense to use both methods (break bulk point AND consolidation point). Aspects of both approaches are often used in the supply chain. A certain quantity of individual deliveries is first transported to the consolidation point, where they are consolidated and transported to the break bulk point as a consolidated load. It's here that they are split up again into specific partial deliveries.
A classic example of the break bulk point is B2B or B2C parcel shipping. This is because individual parcel deliveries are stored in special interim warehouses, split up according to their destination and then shipped to the final distribution centers.
