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Groupage
Groupage is the practice of consolidating shipments from multiple customers into a single vehicle so each shipper pays only for the space they use.
Also known as less-than-truckload (LTL), groupage improves vehicle utilisation and lowers cost per shipment by sharing capacity. The trade-off is added complexity: multiple pickups and deliveries, careful load sequencing, and accurate space accounting (often in loading metres).
A TMS supports groupage by tracking each consignment independently, planning multi-stop trips, and pricing per the space or weight each customer occupies.
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