With costs already squeezed in the supply chain, finding further opportunities for savings is an important focus for manufacturers, retailers and hauliers. LPR, one of Europe's leading pallet pool operators, is calling on manufacturers to look at supply chain collaboration as one way to achieve this.
Empty or part loads are the logistics sector's most wasteful practice. Making up around one third of lorry movements in the UK, it's a significant financial and environmental waste. Improved collaboration can help reduce this figure and save the costs of wasteful journeys.
Jane Gorick, managing director of LPR, is calling upon FMCG supply chain professionals to work together and develop innovative solutions. “Greater collaboration between the constituent members of the industry is most definitely the future for the supply chain. We've reached a tipping point, where supplier costs can't continue to be the source of savings, so new and more innovative ways of working are the next step.
“The FMCG marketplace is one where collaboration can be achieved quite easily. Brands only compete on the shelves – how they reach the shelf doesn't affect buying choices. By joining up on delivery methods, routes and even warehousing, manufacturers can drive out costs.”
If companies work together the benefits can be felt throughout the supply chain and beyond, transport is more cost-effective, there are less lorry movements in RDCs and fewer vehicles on the road.
“LPR is already leading the way. We work closely with our logistics partner TDG, which handles all our 4.7 million pallet movements in the UK's FMCG marketplace. By aligning the two businesses, greater vehicle utilisation can be achieved – as once TDG delivers its clients' products, it then brings back empty LPR pallets for refurbishment,” adds Gorick.