Driving Profitability with Swaps and Exchanges - Sponsored Whitepaper

Swap and exchange programs can significantly reduce logistics costs, as well as an organization’s carbon footprint. Despite its potential, the technique is often constrained by commercial, technical and operational concerns.

In today's tough economy, now more than ever, companies are seeking ways to control costs. Logistics budgets, which include the receipt of inbound raw materials and the shipment of outbound products, often exceed 15% of sales; excluding raw materials and energy, they can be larger than other production operations and maintenance expenses. Thus, improvements in supply chain management can have a signicant impact on a rm's bottom line. Swaps and exchanges are supply-chain-management practices whereby manufacturers contract with competitors to supply their customers with product during a specic interval until they are able to resume shipments.