Collaborative Logistics: The Way Forward

Oct 26
09:58

2015

Lisa Jeeves

Lisa Jeeves

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For those looking to secure a courier contract, in an increasingly competitive environment, collaborative trading partners that come out on top.

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In this age of 'connectivity',Collaborative Logistics: The Way Forward Articles businesses are finding it easier than ever to successfully work together, and the logistics industry is no exception. With the development of sophisticated telematics systems and online freight and courier exchange platforms, logistics organisations can reap the benefits that come from collaboration.

The key aspect of collaborative logistics is the sharing of information; indeed, in the 'Information Age' knowledge is more important than ever. Collaborative logistics strongly emphasises the sharing of information, along with equipment, vehicles and carriers, via electronic media and software systems.

Individuals and companies in the logistics industry will find that collaboration comes with three key benefits shared among all the trading partners. Whether you’re part of a huge shipping operation or simply looking to pick up a new courier contract, collaborative logistics can enhance your business.

Efficiency

Collaborative logistics can help all trading partners achieve maximum productivity with minimum wasted expense or effort – in other words, efficiency! Courier exchange platforms make a great example. These platforms allow companies, drivers, and self-employed couriers to share resources and find courier contract jobs.

Let’s say a courier is making a delivery from Location A to Location B. When the courier has completed the delivery, he will return to Location A with an empty vehicle, thereby wasting fuel and time that could have been utilised on another delivery job. But if the courier uses an online courier exchange, he might be able to find an available load in Location B that needs to be taken to Location A. The driver can contact whoever has listed the load and arrange to deliver it on the return leg of his journey. Because of the power of collaborative logistics, this exchange is a win-win: the person who listed the job gets his load delivered, and the courier makes his otherwise empty return journey profitable.

Flexibility

Collaborative logistics also provides all trading partners involved with greater flexibility. By working with subcontractors or independent owner-drivers working via courier contract, transport companies can find the right driver and vehicle for every job. For example, if a transport company needs to deliver a large load, but has no vehicles with enough capacity, instead of investing in expanding the existing fleet of vehicles, they can enter into a short-term courier contract with an independent driver. Another win-win situation! The transport company has found a low-cost solution to its problem without increasing its overhead costs, and the driver has found a valuable business partner for future employment opportunities.

Visibility

When trading partners collaborate, everyone's visibility in the marketplace is boosted. By working together, these partners are able to do more with their shared resources than they could do alone. More resources equal more deliveries, and more deliveries equal more customers. In a competitive business environment, networking and collaboration means that the 'pie' is bigger, and everyone benefits from getting a slice.