enroute
ties to combine trips. For example,
Hershey might tender a load of
packaging supplies bound for
Robinson from St. Louis to an “
outbound” refrigerated carrier that’s
scheduled to deliver finished goods
to the St. Louis DC at around the
same time. Instead of returning to
Robinson empty to pick up another
load for the DC, the refrigerated carrier drops its load at the DC, picks
up the packaging material from the
nearby supplier, and then delivers it
to the Robinson plant, where the
cycle begins again.
The advantages to Hershey are
One powerful package.
obvious: The confectioner improves asset
utilization, reduces deadhead time and
miles, relieves its suppliers of the task of
transportation management, and benefits
from volume-based discounts, according
to Cindy Ambrose, project manager, integrated transportation for Hershey. The
company has reduced transportation
expenditures by 5 to 10 percent under the
program, she says.
But the benefits go beyond the strictly
quantifiable, she adds. The continuous
moves program has also opened up new
line-haul opportunities for its truckers in
an otherwise weak market, making
Hershey a more attractive business partner, Ambrose reports. That ensures
Hershey will have the carrier capacity it
needs during times of high seasonal
demand.
Despite the many benefits Hershey has
seen from its continuous moves program,
Ambrose emphasizes it is not a one-size-fits-all strategy. “We haven’t approached
this as a blanket program—we evaluate
each situation on its own merit,” she says.
“There will be times when it does make
sense and … times when it does not.”
QUALITY BATTERIES
World-class quality. Superior engineering. A broad line of
application-specific products. Fast delivery via a nationwide
distribution network. Plus the best customer and technical
support in the industry. It all adds up to one powerful package.
When it comes to motive power, Deka delivers!
• Lyon Station, PA 19536-0147
Phone 610-682-6361 • Fax 610-682-4212 • Order Department Hotline 610-682-3260
www.dekabatteries.com • e-mail: epmmotve@eastpenn-deka.com
Match game
For all its strategic potential, the continuous moves approach has its drawbacks.
For one thing, it’s effective only under a
limited set of conditions. A shipper’s tactical stars have to be aligned for the
method to work, says Charles W. Clowdis
Jr., managing director, North America,
global commerce and transport for the
consultancy IHS Global Insight. For
example, it’s critical that the inbound raw
materials and the outbound finished
goods match up in cube and density so
they can be trucked by the same conveyance, he says.
Geographic proximity is another consideration, Clowdis says. Supplier sources,
factories, distribution centers, and final
delivery locations must be relatively close
to one another or shippers run the risk of
missing the carefully timed shipment cutoffs that are integral to a successful continuous moves plan.
Clowdis says the model can be effective
in the retail environment. If stores are situated close to vendor locations, the trucks
