The solution
P&G and Tupperware both shipped from Belgium to Greece, but their constraints were mirror images. P&G's detergent freight used weight capacity and left volume; Tupperware's plastic goods used volume and left weight.
The solution was to stop treating the lanes as private. Tupperware shipments were folded into P&G's road-rail intermodal flow, with plastic goods riding on top of detergent pallets in 45-foot containers.
ILOS reports a 17 percent reduction in combined logistics costs and a 30 percent emissions cut. Inbound Logistics reports container and weight fill improving from 55 percent to 85 percent and 150,000 truck-kilometers saved.
What it achieved
Bundle heavy and bulky freight, then split the gain
Why it worked
The route overlap was high enough that collaboration did not create a new network.
Tupperware accepted slower transit because P&G's higher frequency protected service levels.
Gain sharing solved the asymmetry: one party got freight savings while the other incurred handling work.
What can be applied
Horizontal collaboration needs two designs: the physical load plan and the profit-sharing rule that keeps the awkward partner onboard.
Aftermath
The case became a reference example for Europe's CO3 horizontal collaboration work. The clever part was not just co-loading; it was recognizing that fairness was a logistics technology too.
FOLLOW THE EVIDENCE
The sources
- Horizontal collaboration in supply chains en.ilos.com.br
- Collaborative Distribution: Taking Off the Training Wheels inboundlogistics.com