In supply chain management, the choice of a transportation system to transport goods until they arrive at the hands of consumers is very influential. In the process of shipping goods, there are two types of transportation systems, called LTL and FTL.
These two systems are clearly not the same and have their own characteristics. Well, what is the specific difference between LTL & FTL? The following explanation is complete with the advantages and disadvantages of these two systems:
Understanding of LTL
Less Than Truckload (LTL) is one type of freight forwarding service that combines shipments from many customers. Some of the advantages include sending using this system is cheaper when consumer demand for the desired product is stable on average.
LTL is more affordable for small-scale businesses because it can share transportation costs with other companies or use logistics service providers. For instance, each company only uses a portion of the truck for its goods and only pays according to the number of products shipped and the length of the trip.
The lack of LTL is that the goods are often stopped and repackaged due to the obligation to reduce the items that have arrived at their destination. As a result, the delivery period using LTL tends to be longer.
Definition of FTL
Full Truckload (FTL) has two possible meanings, which is both companies that have enough products to fill a full truck or only fill a part of it using a special truck without having to be bothered with goods from other companies.
In short, the company hires a special truck tailored to shipping needs. This type of truck is available in a variety of weight and volume capacities. This capacity is also adjusted to the weight or volume of goods to be shipped.
Shipping using the FTL system is more often used for business purposes in larger quantities. The drawback, the price offered is usually more expensive when compared to the LTL shipping system while the advantage is in a much shorter delivery period.
Choosing a Shipping System
Well, how do you choose the delivery system between LTL and FTL? There are several things that must be considered before choosing one of them, such as the size of shipping goods, shipping budget, priority scale, and the type of goods sent.
Especially for this type of item, companies must know what items are to be sent, whether food is easily damaged or items that are sensitive to temperature. This aims to avoid damage to items that can occur during the trip.
When the goods shipped have large volumes but are easily fragile, it is better if you choose FTL. While items that are not too heavy with more durable materials, LTL will be the best choice.
Clearly, the distance between the pickup location of goods should be in an area that is easily accessible by various types of transportation routes. In Indonesia, one of the strategic industrial areas can be found in Karawang New Industry City (KNIC).
Some of the closest access to transportation systems from KNIC are a toll road, Jabodetabek LRT, train stations, airports, and ports. This strategic location also facilitates the delivery of goods everywhere. It is because the basic concept of KNIC is a world-class integrated industrial city so that the presence of world-class infrastructure can be seen in this region.
