Companies Form Net-based Logistics Exchange

The Pillsbury Co., Land O'Lakes, Graphic Packaging Corp. and Fort James Corp. will put their know-how to work collectively in an Internet-based freight and logistics exchange, the companies announced last week.

The exchange will encompass truck transportation by the partner companies in North America, and will allow the manufacturers and their freight carriers to increase truck-use rates, lower administrative costs and improve customer service.

The companies' will use technology created by Nistevo.com of Minneapolis. Nistevo, formerly TransView Corp., provides Web-based hosted logistics-management applications. The company had already been providing Web-based logistics services to a variety of subscribers, including those that are part of a supply-chain alliance announced March 2 by General Mills and Land O' Lakes.

In the new alliance, Nistevo said, participating manufacturers and freight carriers will use the on-line exchange to match product shipments and destinations with trucks, which will reduce empty back-haul mileage. The company explained that the software streamlines contracting, invoicing and other administrative transactions. Nistevo.com said that its technology also enables real-time shipment tracking.

The alliance is expected to be on line by early summer. Alliance partners will over through the next 30 days to complete their plans.

None of the companies disclosed terms of the alliance agreement.