Turn logistics exceptions into profit

There is no such thing as ‘standard’ logistics handling and transportation for many companies. Their lack of standard routes, sizes, quantities and delivery frequencies can make it difficult for them to find efficient solutions because of the large number of variables involved: different suppliers, margins, risks and so on. Needless to say, in their quest for efficiency, it is also important that they continue to deliver on their promises.

When the exception becomes the rule
Therefore, when the exception becomes the rule, it can be particularly challenging to identify where there are opportunities for boosting profit through collaborative partnerships. Usually, each shipper looks for the right transportation partner for them, yet the real potential lies in bundling various transport orders together. If a neutral third party can combine several different freight flows, the risks are spread across multiple shippers and everyone involved shares in the benefits. And those benefits are not to be sneezed at: fewer empty vehicle-kilometres and fewer transport movements, which in turn reduces CO2 emissions as well as logistics costs.

Solving the puzzle for you
Helped by student Jamie van Kam, IDS has conducted research into the opportunities for supply chain collaboration by intensively analysing and recalculating all the order data from the past year. The results were very promising; as a neutral third party, IDS can consolidate numerous shipments to save up to two million kilometres a year. Based on the calculations, this approach improves the load factor by between 8 and 12%. In other words, rather than them having to solve the logistics puzzle themselves, IDS helps customers to improve their bottom line and also frees up time that they can spend on turning the exception into the rule.

 

Would you like to know more about the research findings, or are you keen to hear how IDS could help you to improve the efficiency of your non-standard transport activities? If so, feel free to contact Arno Spoek: arno.spoek@idsnl.com or tel. +31 (0) 88 437 437 0.