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COLLABORATIVE LOGISTICS

Espresso-live Speakers
by Hardik Singhvi
2 June 2012

Every Shipper, logistics service provider and customer across the globe always look for optimization of supply chain cost, and aligning it with keeping on-time delivery commitment to its customer, but with rising fuel prices adds to its supply chain cost which directly impacts its bottom line, makes him crave for innovative solutions which can reduce its overall supply chain cost. According to European Shippers Council on an average freight transportation cost forms 30% share of total supply chain cost across industries while global average of logistics cost as percentage of turnover across industries stands at around 9.14%. Now the question arises what can be done to reduce these costs across supply chain. Initial initiative was taken by group of companies (competitors and non-competitors) in France (Europe). which came together and experimented on advance concept of 4PL called as collaborative logistics. What is collaborative logistics? What are the pros and cons of this model? How actually it works? We will have answer to these queries as we elaborate more on this concept. At the later sections of this white paper we will also discuss some case studies for better understanding of the reader.

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