Teaming Up with Competitors to Gain Transport Cost Advantages

A European organization with the ugly acronym of ELU-PEG is bringing competing companies together to provide consolidated deliveries to retailers according to a CFO magazine piece:

“Benefits include increased delivery frequency, lower inventory, fewer out-of-stock situations, and improved on-time performance, according to Alan Waller, vice president of supply-chain innovation at Solving International, a UK consultancy.”

Europe’s higher, relative to US, fuel costs make this type of cooperation easier to swallow.

By the way ELU-PEG stands for European Logistics Users, Providers and Enablers Group. Wow, somebody needs to go to acronym school.

Is your company considering cooperative shipping with competitors to retail sites? What other ways are you achieving the benefits stated (delivery frequency, inventory, stock outs, OT performance)? How about a better acronym for those European guys?

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