Inteplast Case Study

6. Addendum: Pool Distribution

Table of Contents

Pool distribution is a transportation option for high volume LTL shippers. Pool distribution combines multiple modes of transportation in order to compartmentalize the specific transportation functions - pickup, line haul, cross-dock, and delivery. Each function is tendered to a service provider, whose core competency is that specific function, thus maximizing efficiency throughout this component of the supply chain.

The opportunities to add value through Pool Distribution increase as multiple shipper networks are integrated, connecting a broader network of shippers, receivers and carriers and enabling enhanced opportunities for communication and improved execution. Central to the effort to connect a network of collaborating parties is the development of a common information hub. In general, the level of information sharing increases with the level of collaboration.

The most critical factor in Pool Distribution is ensuring that all parties are of the right mindset and have the correct expectations for the results of the program. The key to success is collaboration. Complete and accurate data must be available to all parties to ensure that the program is successful for everyone involved - all partners must be equal and must understand the role they will play and the benefit their organization will realize before any shipments move.

Those considering implementing a Pool Distribution program should recognize that while the concept is not new, effective execution remains challenging and will only be successful with capable and committed supply chain partners. What's important to recognize is that with any form of Pool Distribution there must be a driving motive for all parties involved in the relationship to work together to achieve something greater than any individual company acting in isolation could achieve on its own. To that end, participants become a committee of "equals" - there is no room for "lesser members".

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