ABN AMRO SECTOR ANALISIS: The future of a sustainable Supply Chain depends on Transport and logistics horizontal cooperation
You will see the second edition of a triptych that we (ABN AMRO, Transport and Logistics Netherlands and FENEX) issue under the title “logistics value you create together.
The first part of the trilogy was published in February. It focussed on the importance of partnerships between logistics service providers and shippers. One of the main conclusions was that true partnerships provide an acceleration in innovation, but they still come off the ground. The front of you publication focuses on horizontal cooperation, we mean cooperation between logistics companies themselves.
You will be shown the results of a survey conducted among logistics service providers and freight forwarders. There is a change in the way people view the benefits of cooperation. Or perhaps the period of economic downturn has had an effect on this. Certainly these lean economic conditions can provide a new direction has been added to this topic and the potential for all parties.
Horizontal cooperation improves customer loyalty are your clients like you, moving in strong markets. Important for them is that they can rely on a stable logistics partner. A partner who, despite these difficult economic situation (or perhaps even because of!) Continues to invest in an optimal network and services. Cooperation can do for you the road to new success. pulling together with other entrepreneurs? Perhaps the eye simple questions, but it requires commitment to test this in practice.
The ‘mental shift, “or the willingness to go through this process is a prerequisite for success. The personal conviction that cooperation may be cause many are in this phase, although still ‘between the ears’, but is essential to success. The potential determines the value of a co-operation, and it is necessary to translate the thoughts in concrete plans. Early this is (unknowingly) taken an important threshold in the process. Profit without growth … Competition in the logistics sector increased sharply by efficiency and price pressure. In addition, it appears that the short-term cargo volume will not rise sharply. Indeed, the growth regions of today are far beyond Europe.
An integrated vision of supply chains is happy beyond thinking in tonne-kilometers. The sustainability of the supply chain is in many agendas and presents a variety of opportunities in technology, IT data usage and deployment of equipment. That means we have to think differently about how our companies should develop in order to be profitable. “Smarter use” fits with existing volume in an era of ‘profit without growth’. Collaboration with your logistics partners may be the most sensible step to achieving sustainable supply chain of your principal. And that goes for your business! Cooperation begins with the mental shift … another form of growth … In our daily lives we unconsciously work continuously together. Whether in sports or in their own families, we all have the belief that teamwork us as individuals can bring a lot. In business it seems to be a difficult task.
Where and to whom are the various interests, what motivates them, and what goals they have. On the other hand, more intensive communication with colleagues undoubtedly give opportunities to improve team performance. We all know how important collaboration with colleagues as a motivator to get KPIs. A real challenge will be if you want to collaborate with the ‘outside world’. Serious themes such as culture and the importance of transparency get an extra charge. After all, the direct commercial result is paramount. The question is what information can be exchanged at any time. And what if it turns out that the expected potential yet less rosy, or even not at all appear to be present. Cooperation is all about preparing the mental shift Partnerships are not ‘born’, no, partnerships ‘come about’.
Make no mistake, all existing forms of cooperation are preceded by a (sometimes lengthy) process. At each stage of this process, the cooperation will be a bit closer. The first steps are often put out a brainwave. How can I go more to the needs of my client? Where are the limits of my business and when it may be interesting Bart Banning sector banker transportation and logistics Peter Sierat Transport and Logistics Netherlands Liesbeth Slappendel Fenex Logistical value you create together
– Part II 2 The time has come for companies to push their own logistical limits’ Their challenge fundamental limits of Their logistic systems’ by including the use of partners before their competitors. Challenges in logistics are fascinating, but also significantly the European Transport White Paper leaves no doubt. All Member States should use the coming years to increase the sustainability of the logistics industry. That will both mean that a more optimal distribution should come between the modalities road, rail and water. Known in this context are the target percentages of various Dutch seaports in the modal split. On the other hand, there should also be put steps within each modality to save costs and reduce emissions.
The technique will certainly help us in this, but there are other options in order to offer this great task the head. One challenge, for sure. But at the same time also makes sense when it is realized that at European level, 24% of all road transport activities only ‘air’ as a product transported and the overall load factor falls silent at only 43% 1. According to calculations, the costs involved will increase with this low occupancy since 2001 by 40% until 2012. High-level, politically as well as industry (for example, P & G, Nike, Unilever and DHL), there are initiatives that the goals of this White Paper must realize. While industry has thus far predominantly focused on optimizing their logistics performance is the period arrived to take the next step; sharing costs and improve the use of the overall asset capacity. An example is volume optimization by transporting lightweight products such as toilet paper with heavier bottles of mineral water (usually to the same terminal, DC or grocery store) 2.
The joining of the logistics of season sensitive products is another example. But also horizontal partnerships can make a major contribution. 1 World Economic Forum report 2 Dr Maria Jesus Saenz, Oct. 24, 2012 Logistical value you create together – Part II 3 Horizontal co-operation sweeps the industry to scale. After all, the environmental requirements in terms of CO2 savings are ambitious, also, the importance of an efficient supply chain top of everyone’s agenda. In the world of transport and logistics so many years, talked about the benefits of cooperation.
This publication discusses the form of horizontal cooperation. Logistics service provider, freight forwarder and carrier in most literature the terms logistics service provider, freight forwarder and carrier are mixed, while often meant no particular distinction. In this report, we use mainly the term logistics service. Logistics service providers are active in warehousing and other value added activities.
The focus can be more on shipping activities or more on transport activities. But the activities always happen for third parties. If specific transport or freight forwarders are intended, this is named. Purpose of cooperation The aim of a form of cooperation is mostly aimed at continuity and a better positioning of the companies to their clients. Within transport and logistics to achieve its synergy benefits by charge exchange, but also cooperation in the field of warehousing. In addition, expansion of an existing (though inadequate) network a reason to seek cooperation. There are many examples of successful initiatives that have arisen from this.
Cooperation also provides important opportunities regarding the feasibility of investments in non-core activities. The data traffic plays a crucial role in the efficiencies of the logistics sector. However, it can be a daunting task for a logistics provider to separate the right choices. So why not also work together in this field, or in the procurement of fuel, tires and other equipment? However, there are pitfalls. The challenge is in managing the vulnerability (which is a lot by any reason steps out of the network) and the fact that all participants uniformly have recognized the importance of the development of the network on the retina. Initiatives horizontal cooperation
As stated, the period of economic downturn accelerated the process of collaboration. The need for improved efficiency and the fact that there are uncertainties about the development of freight volumes has for a number of entrepreneurs significantly increased the sense of urgency. Existing initiatives Partnerships have already been known. Attached are some examples of existing partnerships that already in the transport market have an established name. The underlying reason for the start of these forms of cooperation are often thought synergies in addition to the desire for a more extensive network. In the Netherlands and
Benelux example: 3 In Europe: In addition there are many more or less invisible, partnerships that are less formal and whose cooperation is not established within an umbrella name. 3 Transport and Logistics, April 4, 2013, page 26. Logistical value you create together – Part II 4 New initiatives from the news of recent months shows that there are new collaborations started or where it was agreed a serious intention. To name a few: – Log4chem3, joint venture in which Bertschi, Hoyer and De Rijke Group members; – Format XL4, which the participating companies have started the next phase of their existing joint venture by transferring this collaboration in a separate company; – CO35, a European horizontal collaboration in the retail logistics chain. It concerns four brand manufacturers (led by Mars) for full trucks to the DC’s major retailers.