Saturday 22nd Oct 2016 - Logistics Manager

Transport deal pays dividends

Kimberly-Clark and Kellogg’s have seen cuts of seven per cent in their transport costs from a collaboration project run through TDG.

The operation is saving 270,000 miles a year and more than 30,000 gallons of diesel a year while the combined environmental benefit equates to annual savings of 380 tonnes of carbon dioxide. TDG uses its hi-cube vehicles and warehousing network to find practical ways to consolidate Kimberly-Clark and Kellogg’s orders and delivery schedules without impacting on customer service expectations across their individual bases.

The two manufacturers share many small independent and multiple retail customers. Both also have long-term relationships with TDG. The project kicked off in 2006. TDG began overnight trunks of Kellogg’s products from manufacturing units directly into the Kimberly-Clark distribution centre at Northfleet. Kellogg’s loads are cross-docked overnight, consolidated with Kimberly-Clark deliveries.

The collaboration is now being rolled out across the rest of the country.