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 $1.6 million.
"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."
SC Johnson has also maximized its use of "day cabs," which are truck cabs with no sleeping compartments. Since these day cabs are 3,000 pounds lighter than a standard truck cab, using them has allowed the company to increase the amount of product it loads into a trailer before reaching the vehicle's maximum weight. Day cabs are now used for all regional one-day shipments, which has helped improve transportation efficiency.
Cube Utilization in 15 Words or LessA measurement of the utilization of the total storage capacity of a vehicle or warehouse.
-- Kate Vitasek, Supply Chain Visions
Visit www.transportationoptimization.com/vlbgame.asp for an online game that challenges you to load the exact right amount of freight -- no more, no less -- on a truck.
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About the Author
Dave Blanchard
Senior Director of Content
Focus: Supply Chain
Call: (941) 208-4370
Follow on Twitter @SupplyChainDave
During his career Dave Blanchard has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeek, EHS Today, Material Handling & Logistics, Logistics Today, Supply Chain Technology News, and Business Finance. He also serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2010), which has been translated into several languages and is currently in its second edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.