Two of the world’s largest candy makers say they will work together to sweeten their supply chains and reduce their carbon footprint in North America.
Hershey and Ferrero launched a collaborative warehousing, transportation and distribution initiative in North America Wednesday.
Hershey, a $6 billion U.S. chocolate and candy maker, and Ferrero, the almost $9 billion manufacturer of brands such as Nutella and Ferrero Rocher chocolates, will join to reduce truck miles, carbon dioxide output and energy use. Although details of the initiative were not released, the shippers are expected to share warehousing and distribution facilities and truck capacity.
That’s an unusual step for competitors, but one logistics providers say will become more common as freight capacity tightens and transportation costs rise.
“Collaborate supply chain operations are a growing trend across industries as companies seek to fully leverage their logistics infrastructure,” said John P. Bilbrey, president and CEO of Hershey, a $6 billion company based in Hershey, Pa.
The alliance does not encompass manufacturing, selling or marketing activities, the companies said. They hope to realize gains from the pact as early as 2012.