Trade Groups Launch Transportation Collaboration Project

ORLANDO — The Consumer Goods Forum, Food Marketing Institute and Grocery Manufacturers Association have launched an initiative to identify opportunities for retailers and manufacturers to share transportation capacity in order to improve efficiencies and deliveries.

The initiative — the Collaborative Logistics Benefits & Feasibility Assessment — was announced today at a session at the Supply Chain Conference here, sponsored by FMI and GMA.

The initial phase of the project is being coordinated by Atlanta-based Chainalytics, provider of supply chain intelligence, analytics and advisory services.

To date, four food retailers have joined the program: Brookshire Grocery, Meijer, Wegmans and Price Chopper (Golub). In addition, seven CPG firms are participating: MOM Brands, Land O’Lakes, McCormick, Colgate-Palmolive, Pepsico, S.C. Johnson and Dannon. The companies will provide transportation data to Chainalytics in order to see whether they have any overlapping transportation requirements that could lead to cost-saving collaboration.

The trade groups are seeking additional retailer and manufacturer participants for the initial phase of the project, expected to be completed by the end of the second quarter, said, Gary Girotti, vice president, transportation, Chainalytics, during the Supply Chain Conference session.

“We are looking at this to potentially unlock bigger [logistics] opportunities,” said John Phillips, senior vice president, customer supply chain and logistics, PepsiCo. “You may have a transportation void in a particular area and you find that six peers have the same need. All of s sudden you could get together and look at sharing a leased fleet and that would change your cost and service levels."

For more information contact Mike Hane at [email protected].

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