They are competing with the airlines who have a similar operating practices.
I once gave two bags to an airline and told the lady I was going to Hawaii, and one bag was going to Orlando, and the other to Dallas.
She said "We can't do that."
I asked "Why not? You did last time."
I think the platinum badge on the luggage tag is to make you feel good. The handlers pay no mind. They sort the bags onto carts bound for deck, port, starboard, aft, or forward. Then deliver using the least amount of walking possible.