Currently, one of the most sought types of cargo
transport due to flexibility to meet the demands of
smaller loads, fractional logistics favor small and
medium-sized enterprises, especially e-commerces.
To ship your products, just hire a carrier, load the truck
or other type of vehicle and hope that the goods arrive
intact to the given destination?
It might be like this, but you’re going to need a lot of
hope.
There are many factors that are analyzed and a lot of
logistics strategy for this movement to happen, in or‐
der to transport their products safely, being monitored,
in the shortest possible time and at the lowest cost.
As a company’s shipments are not always large, a way
has been created to optimize the process, enabling it
also for small and medium-sized enterprises: fractional
transport
While the load stocking or closed load is a modality in
which the charge of a single customer fills the entire
capacity of the vehicle, being delivered directly to a
destination, the fractional load fills the truck with loads
from various companies, which can be delivered in
different places.
Knowing the modalities of cargo transport can make
all the difference in the efficiency of companies’
operations, cost reduction and meeting deadlines.

What is Fractional cargo transport?
When there is not enough amount of a cargo or it is
not large enough to occupy the entire vehicle in which
it will be transported, it can be sent fractionally, that
is, along with goods from several other companies,
reducing costs.
It is the ideal logistics solution for customers who do
not ship high amounts of products.

How is fractional logistics done?
Load grouping is made of various types of
merchandise, as well as multiple senders and to
multiple destinations in the same shipment.
Fractional logistics are concerned with bringing
together compatible or similar products in the same
vehicle.
This means that goods from a segment, such as
medicines, will be transported with items from the
same line or at least with products that are non-toxic,
do not damage or contaminate them.
In addition to respecting these conditions, you can
adopt strategies to merge different goods using
criteria such as large and small batches, light and
heavy loads, to expedite deliveries.

Route planning
Unlike what happens in a stocking load, in the logistics
of fractional loads the transport is not carried out to
just one destination, so route planning is essential.
To define a more efficient route, you consider:
• distance traveled;
• number of points to be met;
• expense on fuel;
• delivery time.
There are software that perform all calculations
automatically and offer the best path options,
according to the defined premises.

 

Deadline in the logistics of fractional loads
Everyone knows that shipping within the combined
time frame is essential for achieving positive results.
The biggest challenge of fractional logistics is to
meet this commitment. For such, calendars are used
that, in addition to delivery dates, consider the time
intervals provided for goods to stay in transit and also
information of allowed times of movement of trucks in
some cities, as it can be
an obstacle to delivery.
Sometimes fractional logistics employ smaller cars to
circumvent this restriction.

Advantages of fractional cargo transport
• Price: as the volumes are smaller and the cargo
vehicle is shared among several customers, the freight
price is lower, since it is apportioned between them.
• Great availability of regular routes to various regions
of the country.
• Allows the distribution of goods to many customers,
at different addresses, in just one trip.
• Delivery time: agility on time, since it is not necessary
to expect to have a giant volume of orders to send
them.
• Safety: fractional cargo selects similar types of
goods to be transported. For example, frozen products
are not taken with dry load, so that they reach their
destination in perfect condition
• Monitoring: monitoring of all deliveries through
tracking.

Ideal for e-commerce
While the load capacity is most used in negotiations of
companies selling large volumes to other companies,
fractional cargo logistics serves both companies and
individuals, with the end customer focused.
E-commerce operations, which meet several orders,
usually with small volumes, for different customers,
in different regions, and still have the delivery time as
differential, find in fractional logistics the solution to
gain agility.
So if the store needs to send a bag to one city, a blouse
to another and a jacket for a third, fractional logistics
will realize that end customers receive the products
within agreed time
In addition, companies can control the status of all
deliveries through tracking and thus inform their
customers – increasing their credibility. After all, the
most common complaints in e-commerce refer to
delays, occurrences of breakdowns and loss.

Fractional logistics for B2C and B2B
Most e-commerces operate in the Business-to-Consu‐
mer (B2C) system, that is, transactions made between
a company and a individual customer.
In the case of the B2B (Business to Business) distri‐
bution, where companies trade products and services
with other companies, the process is more complex,
because there is a higher volume of purchase, in
addition to different types and freight values.
Unlike B2C negotiations, where the volume of products
purchased is fractionated, since there are several small
orders for different customers, the B2B model works
with a large amount of goods on few orders.
It may not seem like it, but the change of target
audience – individual or legal – affects the entire
operation: price, product type, marketing, tax
management and, of course, logistics.
The average B2B order ticket is greater than the B2C
due to the high load volume. If the amount of products
is bigger, the delivery time usually is too.

Delivery models in B2B distribution
For B2B deliveries, there are two most widely used
shipping models:
• CIF (Cost, Insurance and Freight, or Cost, Insurance
and Freight), where freight and insurance are paid
by the supplier, who is responsible for delivery to the
place of destination;
• FOB (Free On Board, or Free On Board), in which the
supplier company is responsible for the shipping and
insurance costs of the cargo only until it is dispatched.
From there, the purchasing company becomes
responsible for the payment of transportation and
insurance.
The decision by one or the other depends on the
strategies of companies, but it can be said that many
use the CIF as a way to retain customers.

Right choice
Working with orders from different customers requires
experience, planning and technology.
The intelligent logistics network, with route systems
and management of cargo, terminals, distribution
centers, fleet and employees, aims to make orders
sent properly, quickly and safely.
That’s why it’s so important to make a rigorous
selection. With integrated packaging, labeling, storage
and control, Sequoia has a history of success in
fractional logistics.
Its delivery and collection systems are carried out by
it’s own fleet, performs detailed monitoring of the order
cycle, specialized management of third parties and
related services and monitoring of cargo and transport
routes. It is not by chance that it makes about seventy
thousand deliveries per day, in dedicated and fractional
cargo.