Collaborate to reduce empty running
Collaboration on logistics can save money and reduce the carbon footprint. A number of hauliers, retailers and logistics firms are blazing a trail to a more collaborative approach. While still in its infancy and not wholly embraced by all operators, collaboration has proved its worth for a number of organisations and has real potential as operators look to reduce their carbon footprint and save costs.
IGD Initiatives reduce road miles
The Institute of Grocery Distribution (IGD) has recently reported on a number of initiatives from its members. Since it started work on transport-related environmental initiatives in 2006 it has, with the involvement of 40 leading UK manufacturing and retail brands recently met its target to remove 120 million road miles. This annual saving is equal to removing 2000 lorries from the UK’s roads and saving 60 million litres of diesel.
Examples of the initiatives include:
- Mars and Nestlé combining loads for delivery of Christmas confectionary items to three Tesco distribution centres, removing 8000km of duplicate journeys.
- Kelloggs and Kimberley-Clark with logistics provider TDG saving 270,000 miles per annum and more than 30,000 gallons of diesel per year by sharing onward regional distribution. Kelloggs services the North from its Trafford Park site, and Kimberley-Clark services London and South East from its Northfleet Kent location.
Other initiatives include supplier and retailer backhaul, replacement of dedicated fleet with shared-user transport and the use of high-cube trailers. Fuel and cost savings come from minimising empty running and maximising full loads, by sharing distribution or collaborating on return journeys.
Third Party Logistics makes a come-back
Third Party Logistics is making a come-back in some areas as companies see the potential environmental and cost benefits of 3PL and multi-user transport solutions. For example NYJK has developed a niche product in the electrical goods sector and Wincanton's WH Smith operation has evolved into a multi-client solution for GSK, Matalan and others.
Operators working together
Jigsaw is an example of a 9-partner alliance with an independent central management team. While Wincanton has developed working relationships with a number of 3PLs and hauliers to share traffic and reduce empty running.
Resistance to change
Wherever collaboration is working it tends to be between companies of a similar size and profile, and where loads and requirements are compatible. However not everyone in the industry is taking this approach, with some tenders still insisting on no co-loading or sharing of competitively branded trailers.
Pulling Power Perspective
Pulling Power is delighted to report all these examples of collaborative initiatives to reduce road miles and empty running. With Axscend trailer management, hauliers can also gain "efficiency through visibility". Axscend trailer tracking uses satellite tracking of trailers combined with online management software to give full visibility of trailer utilisation. Operators using this solution can reduce the number of trips needed for pick-ups and drop-offs, reducing fuel usage, costs and carbon footprint.
