Welcome to the Pallet Pilot of NexTrust – A Project of EU’s Horizon 2020 research and innovation programme.

Combining Supply and Disposal Processes

This project combined the transport of returnable loading equipment and finished goods to avoid empty running and therefore drive down CO2 emissions. By combining these two transport flows and bringing together the supplier, the retailer and the provider of pooling services in a trusted environment, transportation synergies can be gained by creating roundtrips.

In the current retail set up there is no coordination between requesting a pallet pick-up an schedulding a delivery of finished goods.
Check out the problems by clicking on the question marks.

With NEXTRUST, you increase efficiency and sustainability by developing interconnected collaborative networks along the entire supply chain.
Discover the functionality and benefits by clicking on the question marks.

The trustee provides the data hub. In addition, he monitors compliance standards and secures a fair gain share model.
Below you learn more about the workflow and the trustee’s role.

The Current Retail Setup

What collaboration can do

The Trustee Model

In the current retail set up there is no coordination between requesting a pallet pickup and scheduling a delivery of finished goods. After unloading of the finished goods at the retailer’s warehouse the trucks leave empty to another pick-up-location.

In the current retail situation pooling povider are not involved. If trucks only unload goods at the distribution center and if there is no upload any returnable assets, they leave empty to another pick-up-destination. Again, this causes empty miles.

Pooling service providers collect empty pallets at the retail distribution centers. Usually the trucks arrive from another destination empty to the ramp. Again, this causes empty miles.

If trucks only unload the assets at the service point, they leave empty to another pick-up-destination. Again, this causes empty miles.

The pooling service provider delivers empty assets to the supplier. After unloading at the supplier, trucks leave empty to another pick-up-location. This causes empty miles. However, if you have a look at the physical flow of returnable assets and of the finished goods you will realize that the first one goes in the opposite direction compared to the second one. And that allows perfect match making.

Combining the transport flows and bringing together the supplier, the retailer and the provider of pooling services transportation synergies can be gained by creating roundtrips. No empty miles.

Initially coordination of roundtrips means additional planning effort for the logistic service provider, because every “change in the system” affects the transportation network. For the retailer there is no additional coordination effort.

At the end collaboration means better capacity utilization, less empty running and more sustainability.

Today pooling service providers supply empty pallets to the FMCG industry and collect them at the distribution centers of the retailer without being involved in the finished goods supply chain. By combining these transport flows, CO2 emissions can be reduced. By integrating additional partners and locations, scaling effects can be achieved.

Nevertheless, due to seasonal fluctuations there could be an imbalance in the availability of capacity.

Trade logistics Head of logistics DE/CH/BNL Supply Chain Laundry & Home Care, Henkel AG & Co. KGaA

Supplier

The supplier defines the transport equipment requirements. He provides the shipment data of the finished goods and harmonizes the transporter between supplier and pooling provider.

„The growing transport volume can only be overcome if we use the available transport space cooperatively and efficiently in the sense of the ECR concept.“

junior project manager customer relations, Mars GmbH - Market Supply Chain

Supplier

The supplier defines the transport equipment requirements. He provides the shipment data of the finished goods and harmonizes the transporter between supplier and pooling provider.

„The project has shown the potential that exists through collaboration with different companies in a supply chain.“

deputy manager of mechanised areas, EDEKA Handelsgesellschaft Rhein-Ruhr mbH

Retailer

The retailer harmonizes time slots between finished goods deliveries and returnable assets.

„The pilot has shown that by reducing ramp contact whilst maintaining consistent service levels, efficiency in retailers’ logistics centres can be increased.“

VZ supplier support, dm-drogerie markt GmbH + Co. KG

Retailer

The retailer harmonizes time slots between finished goods deliveries and returnable assets.

„Successful pilot – we see challenges in transferring it to a complex network.“

country director D/A/CH, IPP Logipal GmbH

Poolingprovider

The pooling provider harmonizes the transporter between supplier and pooling provider and provides the shipment data of the returnable assets. Pooling service providers supply empty pallets to the FMCG industry and collect them at the distribution centers of the retailer currently without being involved in the finished goods supply chain.

„Standards are required for data exchange in collaborations. Many things are made easier with standards.“

Rigterink Logistik GmbH & Co. KG

Transporter

The transporter provides the transport equipment and the transport capacity. He also creates roundtrips. After unloading at the supplier, trucks mostly leave empty to another pick-up-location.

„The challenges presented by transport logistics can only be solved through cooperative collaboration.“

No Information
no Coordination

Information
Coordination
Collaboration

Provide data

Coordination and Information Flow

Partners

Benefits

Through cooperation in the supply chain between manufacturers, retailers and pooling providers, a number of advantages can be achieved for the companies involved.

Saving of empty runs up to 25 percent
Reduction of CO2 emissions
Positive economies of scale through network expansion
Fewer ramp contacts at retail and industrial warehouses
Long-term reduction of administrative expenses
Advantages in the procurement of logistics services through bundling effects

Results

The pilot project has shown that cooperation in logistics between manufacturers, retailers and pooling providers makes efficiency increases possible that would not have been possible without cooperation.

Despite initial increased planning effort, savings potentials could quickly identified and realized. Initial concerns about the equipment required could had been quickly overcome. Companies also benefit from improved collaboration across the entire supply chain.

Approximately 25 percent of an average single trip are calculated as empty running.

Nearly 30 tons less GHG emissions per year according to a year‘s mileage of a truck of 130 thousand kilometer*.

*Assumptions: Fuel consumption = 30 L/100 Km, GHG emissions = 95 Kg /100 Km
The reduction of GHG emissions is determined according to the EN 16258 norm

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