Aggregate Industries’ Building Materials division has signed an eight-year partnership deal with TDG worth £50 million annually in a bid to manage its transport operation more efficiently.
The company currently covers 100,000 miles a day distributing more than five million tonnes of product from its 42 sites across the UK.
TDG will manage Aggregate Industries’ existing hauliers through a central platform using its integrated transport management systems. The platform aims to save the company more than three million road miles a year, cutting carbon dioxide emissions by 12 per cent.
TDG will procure haulage, minimise the number of empty running vehicles by planning routes more efficiently and provide real-time web reporting for planners, hauliers and customers.
Through this co-ordinated approach Aggregate Industries and TDG also hope to improve control of customer services and boost health and safety practice across the operation.
Steel giant Corus, part of Tata Group, signed a similar seven-year supply chain management contract with TDG in 2006. Since implementing the central control platform the company has reported savings of around £70,000 a week and is on target to achieve annual savings of 7.6 per cent in transport costs.