Source region concept

According to a study conducted by the German Environment Agency (UBA), increasing the capacity utilisation of trucks and optimising their route scheduling could cut distance travelled by up to 20 per cent and 10 per cent respectively. (German Environment Agency – UBA)

Brief description

The source region concept is a structural measure in which a number of different suppliers deliver goods to a regional warehouse (source region distribution centre). Orders from the ALDI central distribution centre are routed via such distribution centres managed by freight forwarders.

The aim of the scheme is always to send full trucks to the source region warehouses and from there to the company’s own distribution centres.

Transportation costs can be saved by bundling shipments. Furthermore, besides lowering traffic volumes, the scheme also contributes to easing the company’s own warehousing logistics.

Transport distance

  • Independent of distance

Greenhouse gas reduction potential

  • Greenhouse gas reduction of up to 30 % is possible.
  • The reduction potential very much depends on the situation before and after the switch to the source region concept.

Transferability & challenges

  • High organisational effort
  • Adjustments to the ordering process

Requirements for third parties

  • Willingness of suppliers to cooperate is necessary
  • Reliable freight forwarders required

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