Collaborative Distribution – the next big thing
Kane is Able is at the forefront of the next major advance in supply chain management – collaborative distribution. Our Code Green program pools the inventory and shipments of small and mid-sized CPG manufacturers so common retail customers can receive fewer, larger shipments. The program reduces costs across the CPG supply chain and reduces carbon emissions, since the same volume of goods is delivered using fewer trucks.
Get ready for the next major advance in supply chain management
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The Basics of Code Green
- Uniform freight rate of $55 per pallet for Northeast distribution. That’s anywhere within a 500-mile radius of Kane’s collaborative warehouse in Scranton, PA. This rate can save participating companies 30% - 40% on current outbound freight costs.
- 1 million-square-feet collaborative warehouse dedicated to collaborative distribution in Scranton, PA. This is a large part of Kane’s 8.5 million square feet of distribution center space nationally. Eastern Pennsylvania has been rated the best time-to-market location for northeast region distribution based on its central location and proximity to major highways (Chicago Consulting).
Shared Savings for Retailers and Manufacturers
Collaborative distribution will require all partners in the CPG supply chain to change current processes. But with change comes significant financial rewards.
Company | Required Change | Benefit |
| CPG Manufacturers |
- Co-locate inventory with other companies (including direct competitors) who ship to same customers
|
- Discounted freight & storage rates
- Reduced inventory
|
| Retailers |
- Coordinate efforts of different buying groups to receive goods on same day
|
- $5 per pallet rebate for each pallet received under program
- Reduced labor to receive inbound shipments
|
| Third-party Logistics Providers |
- Change pricing model to reflect efficiencies of collaboration
- Invest in systems to enable data sharing across partners
|
- Expanded business relationships and more strategic role in CPG supply chain
|
How to Get Started With Code Green
KANE is actively recruiting manufacturers to participate in the program. For the rest of 2009,
KANE will use its truck fleet to relocate your inventory AT NO COST if you are within a 500-mile radius of its Scranton collaborative warehouse. To learn more, call 888.356.5263 or email
CodeGreen@kaneisable.com.