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Sharing Space on Trucks Boosts Distribution Efficiency, Cut Costs

Co-loading helps these companies cut their shipping costs by 15 percent to 25 percent, saving millions.

 
PRLog - Dec. 14, 2012 - BOONTON, N.J. -- As a shipper of dense products, tile maker Dal-Tile faces an unusual challenge. The trucks carrying tiles from Mexico to the mid-Atlantic hit their weight limits long before they're filled to capacity.

To fill the empty space on those trucks, Dal-Tile.embarked on an innovative approach to rework its shipping systems.

The tile maker sought out shippers with relatively light product to piggyback in its empty truckloads. Dal-Tile found three companies willing to share space: Whirlpool Corp., the maker of appliances; Convermex, a shipper of foam cups; and Werner Co., a maker of leather products.

By combining loads — or "co-loading" — the shippers cut thousands of truck trips. In all, they saved 500,000 gallons of diesel per year. With diesel at $4 a gallon, that adds up to $2 million in fuel savings.

The companies also shaved their shipping costs by 15 percent to 25 percent.

To learn more about how Dal-Tile implemented its co-loading program, read the December issue of Distribution Center Management.

About the Distribution Group

For more than 40 years, Distribution Group publications have helped distribution center and warehouse managers increase productivity, cut costs, and meet increasing customer demands. Distribution Group publishes "Distribution Center Management" newsletter, books and reports, and a free e-newsletter.

Website: http://www.DistributionGroup.com

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Location:Boonton - New Jersey - United States
Industry:Shipping
Tags:warehouse, distribution, management
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