Internal and external co-loading of outbound flows to increase the sustainability of transport:a case study

Abstract

This paper calculates the potential for reducing internal and external transport costs for a company with three neighboring distribution centers (DC?s), each specialized in a specific product category and each using a separate planning system. Most of the outbound flows are transported by truck, with only a marginal portion transported by rail and Short Sea Shipping. One way to achieve more sustainable logistics, besides implementing a further modal shift, is through aiming for further, more systematic bundling of outbound freight flows, both internally within the company and externally with other shippers. In this study, two options for increased co-loading are therefore investigated. First, internal co-loading within the company by bringing together the outbound product flows in a crossdock located next to the three DC?s in an attempt to increase the fill level of the trailers/containers was studied. Secondly, the potential for external logistic cooperation with another shipper was analysed.