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Nov 19

What is Logistics Pooling?

Logistics-PoolingAt the recent ECR Ireland Supply Chain Summit in Dublin, two themes for the supply chain future prevailed: Sustainability and Logistics Pooling. In this short blog I am going to concentrate on Logistics Pooling – what is it and what are its advantages?

Logistics Pooling has been defined by Jesus Gonzalez-Feliu as the common usage of logistics resources: material (vehicles, platforms), human (drivers, land operators) and immaterial (software tools, information) between organizations. It consists of a semi-closed group of collaborators who share vehicles and platforms to reduce their logistics costs and the environmental nuisances related to last mile distribution in urban dense zones.

Quite simply it is the sharing of transportation resources to get goods to the same distribution centre by making best use of space available (i.e. sending one full truck with multiple organizations goods on board, rather than sending many half empty trucks for each organization).

Logistics Pooling offers the following advantages to suppliers and manufacturers:

  • Ability to meet demands of retailers who want smaller volumes to be delivered more often (greater freshness of product, reduced inventory levels, etc.).
  • Ability to reduce transportation costs.
  • Environmental awareness and sustainability by reducing CO2 emissions.

 

For further information on automating your supply chain processes and making the best use of supply chain logistics, please visit us online at www.B2BGateway.Net, email Sales@B2BGateway.Net or call 401-401-9595 extension 5.

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