JSP reduces carbon footprint with shared shipments
European “CO³” project for horizontal collaboration delivers its first success
On the morning of November 28th 2011, a truck, fully loaded with consignments of lightweight ARPRO® and heavy automotive brake disks, successfully delivered its bundled payload to the plant of JSP in Eschenau, and the metal forgery of Hammerwerk in Fridingen.
This shipment was the result of a project involving JSP and Hammerwerk with support from neutral orchestrator TRI-VIZOR and ‘Collaboration Concepts for Co-Modality (CO3)’, an innovation initiative supported by the European Commission. The objective: to improve the efficiency, effectiveness and sustainability of logistics networks through orchestrated horizontal collaboration or ’Cargo Pooling’.
JSP manufactures ARPRO, an essential product for the automotive, packaging and consumer goods industries. ARPRO is used in light weight, energy absorbing, and structural applications delivering environmental and economic value. Hammerwerk is a manufacturer of advanced metal components for the automotive and aviation industry. The inherent characteristics of their respective products meant that JSP and Hammerwerk were both able to better utilize their ultimate transport capacity by co-loading freight from the other company. The majority of Hammerwerk’s products are heavy but compact; ARPRO is voluminous but very light weight.
By synchronizing and then consolidating their overlapping freight flows, both companies can now share trucks that are loaded to maximum capacity both in terms of volume and weight. JSP and Hammerwerk need less individual trips and vehicles to replenish their manufacturing plants, inventory-in-transit cost is reduced and double digit gains are realized in the CO2 emission per ton-kilometer of transported product.
As such, this horizontal collaboration delivers significant ‘Triple Bottom Line’ (People, Planet, Profit) benefits for JSP and Hammerwerk. It is therefore not surprising that both companies will make logistics bundling and co-loading an integral part of their Corporate Social Responsibility strategy.
This first shipment demonstrated that it is possible to simultaneously achieve breakthrough improvements in logistics efficiency and carbon footprint through horizontal collaboration while maintaining customer service level. In the coming months, JSP and Hammerwerk will increase the intensity and level of sophistication of their collaboration. The results of this project will be closely monitored by the European logistics sector and JSP are already looking to extend shared-shipment projects to many other manufacturers and destinations.