Below are edited excerpts of their conversation. It's all about reducing standing inventory levels and working capital by coordinating supplies and customers' order-cycle times. As smaller packages move more often and there's less standing inventory in the warehouse and less in the truck during delivery, it makes sense that logistics needs to be more collaborative. The members of the current test are mostly food companies. Those folks were very interested in working together, especially during the peak period.
Companies sign up every year, like a magazine subscription.
The amount varies by the number of locations they're delivering to. One company has 80 divisions buying truckload capacity on their own. There's a lot of that happening. The savings vary among different players. The McGraw-Hill Companies Inc. All rights reserved.