What is Collaborative Logistics?
Collaborative logistics is achieved when two or more companies form partnerships, or work with existing supply chain partners to optimize transportation operations by sharing truck capacity to cut the high costs of shipments that are almost empty or at less-than-usual capacity.
Transportation costs for manufacturers are approximately 60% of total supply chain costs. Having multiple manufacturers sharing outbound trucks to customer warehouses can save companies anywhere from 10%-20% off their annual transportation spend. It is also an opportunity to reduce carbon emissions as well as improve service to customers.
In June 2016, FCPC launched a co-shipping, Collaborative Logistics Pilot with select member companies. The overall objective of the pilot is to enable participating members to effectively co-load warehouse deliveries through a third party logistics provider across the country, originating from the Greater Toronto Area to Atlantic & Western Canada, identifying barriers to optimizing consolidation, in order to design a solution for the rest of Canada.