Norske Skog Canada's Newsprint Division is a high volume manufacturer of newsprint. With a heavy and bulky commodity and customers widely dispersed throughout the world, shipping is a significant cost center for the company. In 1999, for example, Norske Skog (then Fletcher Challenge Canada) spent in excess of $100 Million in freight charges. While already a successful distribution system, it was clear that even minor improvements in the efficiency of the overall network would lead to significant cost savings.