Which of the following statements about consolidation warehousing is true?

Consolidation warehousing primarily aims to reduce the number of individual shipments by combining smaller shipments into larger, more efficient loads. This practice is essential in supply chain management as it helps in optimizing transportation logistics and minimizing transportation costs. By aggregating multiple orders headed to similar destinations, companies can enhance operational efficiency and resource utilization.

In contrast, the other statements do not accurately reflect the core purpose of consolidation warehousing. While extensive product storage might be a feature of some types of warehouses, consolidation warehouses typically focus on the logistics of combining shipments rather than long-term storage. The notion that consolidation warehousing only deals with finished goods is also misleading, as it can involve components or raw materials that are being assembled or prepared for distribution. Lastly, one of the key advantages of consolidation warehousing is that it often leads to reduced delivery times by streamlining the shipping process, countering any suggestion that it increases delivery times.