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.
(Boonton, NJ, December 14, 2012) 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.
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