Kane Launches Collaborative Distribution Program
Kane is Able Inc. has launched its Code Green Collaborative Distribution program as an invitation to small and mid-sized CPG manufacturers and retailers to collaborate in revolutionizing their distribution models, making them more efficient and environmentally responsible.
The program rewards both manufacturers and their retail customers for collaborating to ship and receive products from multiple vendors as part of a single shipment and will start with a regional collaborative distribution center in the Northeast and expand nationally as the newer, more efficient model takes hold.
According to Chris Kane, the company’s vice president of marketing and sales, the program was developed to reduce logistics costs in the CPG sector and to respond to the global drive toward energy-efficient supply chains.
“Today, 10 smaller manufacturers likely have 10 separate supply chains within a region, with 10 or more warehouses shipping to the exact same customers using costly, less-than-truckload (LTL) shipments,” says Kane. “Under this arrangement, each supplier is interested only in its own line of supply.”
According to Kane, the program offers small and mid-sized CPG companies the volume-based efficiencies enjoyed by their larger competitors. “These companies will co-locate their inventory in our Northeast collaborative distribution center and we will consolidate outbound freight moving to common retailer delivery destinations,” he says. “Savings will be shared with both manufactures and their retail customers.”
Kane will establish a set freight rate of $55 per pallet for deliveries anywhere within a 500 mile radius of the company’s Northeast distribution hub in Scranton, PA, saving participating CPG manufacturers 30 percent to 40 percent on their current outbound freight costs. For retailers, Kane will offer a rebate of $5 for every pallet they receive under the program.
The company has dedicated 1 million square feet of space at its Scranton campus to collaborative distribution.