It used to be that adhering to such transportation best practices as cube utilization was evidence of a company's good supply chain management, and that was pretty much the end of the story. Yesterday's logistics strategies, however, are today's environmental innovations. Just ask Pat Penman, director of global environmental and safety actions at consumer products manufacturer SC Johnson & Son Inc.
Under Penman's direction, the company undertook what it calls a Truckload Utilization Project, which over a 12-month period eliminated 1,882 tons of greenhouse gases.
SC Johnson created a system that combines multiple customer orders--and multiple products--to optimize truckloads. After the first year of the project, the company used 2,098 fewer trucks, cut fuel usage by 168,000 gallons and saved approximately $1.6m.
"Loading a truck may seem simple, but making sure that a truck is truly 'full' is a science," Penman explains. "Focusing on consistently hitting a trailer's maximum weight provided a huge opportunity to reduce our energy consumption, cut our greenhouse gas emissions and save money. It illustrates how innovation can drive prosperity and responsibility."
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