logistics management Archives - SpendEdge

Tag: logistics management

logistics management

How Procurement Market Intelligence Solution Improved Logistics Management Process for a Retail Firm – A SpendEdge Case Study

The Business Challenge

The client, a leading retail company with convenience stores spread across the United States, wanted to focus on the “last mile” delivery of groceries ordered online. They sought to manage merchandise and inventory to ensure steady sales of stock and reduce chances of stock reduction. They also realized the need to handle problems related to the distribution network that were resulting in wastage of time and money. This compelled them to engage with SpendEdge and closely scrutinize their distribution network to ensure effective logistics management and achieve the following objectives :

  • Analyze market size and growth rate, manufacturing process, and critical-to-quality factors.
  • Evaluate costs associated with materials, labor, transportation, energy, overhead, profit, and other cost components.
  • Critically evaluate available suppliers, their characteristics, and location where suppliers of the category are situated.

Wondering how better logistics management can improve customer services? Request a free proposal below and access our complete portfolio of procurement market intelligence solutions.

Solutions Offered

The experts at SpendEdge worked closely with the client to address the challenges of logistics management and distribution network. They identified demand and price drivers that determined price and availability of products and provided real-time insights to determine appropriate supply markets. This highly focused approach helped the client to design facilities to manage an increase in SKUs and variety of order profiles.

The solutions offered improved the logistics management capabilities for the client and allowed them to incorporate strategies such as cross-docking. This enabled them to improve supply chain logistics capabilities and accelerate the velocity of inventory. Additionally, this improved the logistics management process for the client and ensured quick deliveries in minimum time and cost. The systemized logistics management process considerably reduced the cost of carrying inventory, material handling, transportation, and other related activities of distribution for the client.

SpendEdge’s solutions allowed the client to be more responsive to customers’ demand, speed time to market, and avoid the cost of carrying and managing a heavy volume of safety stock. The comprehensive market research  approach focused on the best practices to improve supply chain logistics and helped the client to react in quick time to changing trends in customers’ demands. They were also able to better gauge consumer sentiment based on both online and offline trends to improve logistics management capabilities and reduce strain on supply chain networks.

Want to know how better logistics management can boost profitability of companies?

Request a free demo from our experts now!

Key Findings

In a span of six weeks, the solutions delivered by SpendEdge minimized the cost of physical distribution of the products by 29%. This enabled the client to attract additional customers by offering better services at lower prices. Moreover, an improvement in logistics management capabilities helped reduce the wastage occurring in the supply chain and streamlined the flow of the products to the end consumers.

The procurement market intelligence solutions offered by SpendEdge delivered an array of critical benefits, including reducing costs of distribution, improving customer service, and reducing chances of “no-stock” situations among others. It redefined the process of logistics management, saving time that was lost in making urgent deliveries and reducing the cost of inventory. Integrating distribution networks proactively also helped the client to ensure the smooth transition of products from manufacturers to retailers to meet customer demands on time.

What are Three Methods for Managing Logistics?

As logistics management plays a vital role in increasing the performance of the business, companies need to find ways to manage supply chain logistics. They can adopt various strategies according to their business needs. Here, we have compiled three key steps that can improve the logistics management process:

  • Inventory management: This is one of the most crucial steps in logistics management. An efficiently managed inventory helps identify a minimum stock level and keeps goods shelved to implement FIFO, or first-in, first-out, especially in the case of perishable inventory.
  • Automating processes: Automating the logistics management process helps companies to unlock value in supply chain logistics and streamlines operations in the long run. It also ensures that operations such as finance and accounting, logistics and supply chain management, and customer services are tightly coordinated to boost efficiency.
  • Planning and communication: As convenience product distributors work in a highly competitive environment, planning is vital to make scheduled deliveries and avoid no-stock situations. With an effective logistics management process in place, companies can easily communicate regular updates to delivery personnel in advance.

Contact Us


Why E Commerce Companies Need to Invest More in Reverse Logistics

What is reverse logistics?

Reverse logistics in ecommerce refers to the return process involved wherein the goods are moved from their point of consumption back to their point of origin. Two key reasons for using reverse logistics in e commerce could be either for disposal or for recapturing value. Making the purchase as well as the return process easy and hassle-free plays an integral part in ensuring customer satisfaction. This consequently results in repeat purchases and loyal customers. To ensure this, several companies are now even hiring third-parties to handle their reverse logistics processes.

Benefits of reverse logistics in e commerce

When it comes to an e commerce business, placing the order is one part of the customer’s encounter with the company and order fulfillment is the other. Online shoppers often don’t shy away from returning products that don’t meet their expectations and making them jump through hoops in order to get their money back on a dissatisfying sale is a great way for e commerce companies to lose their business forever. Here are some of the key benefits of reverse logistics in e commerce:Contact US

Customer retention

In the modern world, having a functional and efficient logistics system is imperative to thrive in the e commerce market. A major drawback of e commerce business is the lack of tangibility of products, and customers often tend to bank on the pictures/videos displayed on the e commerce site. Once the product reaches the customer it might not match the customer’s expectations. One of the key benefits of reverse logistics is that customers would choose the company that offers them the safety net of being able to return products without too much of a fuss.

4 Ways to Save Big Bucks by Banking on Reverse Logistics Companies


Logistics undoubtedly plays a vital role in improving customer satisfaction. If your logistics and supply chain does not fare well in ensuring on-time delivery at the best prices to the final customer, then customer loyalty and the success of your company ultimately goes for a toss. With the growing need for businesses to invest in new opportunities for logistics and supply chain development, several companies are turning to new capabilities such as reverse logistics.

Though reverse logistics is a relatively new concept, it is gradually becoming a full-fledged operation for most businesses. It deals with the processes for inverting the flow to deal with returned parts, materials, and products from the consumer back to the producer. Most often, this includes repair, damage, warranty recovery, value recovery, redistribution, product recalls, service or product contract returns, and end-of-life recycling. 

The million-dollar question that companies have to ask is whether they should rely on in-house reverse logistics or outsource it to a third party who has expertise in the function. A significant drawback of managing this function in-house is that it takes away time from focusing on the core functions of the business. Here is why outsourcing the task to reverse logistics companies can prove to be more beneficial for your business:

Benefits of Banking on Reverse Logistics Companies

Improve the company reputation

A strong reputation or goodwill in the market is key to repeat business and increasing revenues in the long run. Customers expect a hassle-free and easy process when it comes to reverse logistics. By outsourcing the function, companies can provide their customers with a single point-of-contact for dealing with all repairs, warranty replacements, or other needs after the sale. Consequently, this boosts the customer service level of the company especially when you have a dedicated team or person working on all reverse logistics needs.

banner SE (2)

Focus on the core functions

Managing reverse logistics not only requires additional capital and time but also requires space. Companies will have to store products that are being repaired or sacrifice warehouse space for products that are awaiting recycling. This is where reverse logistics companies come to your rescue. They bear the costs associated with storage, management, and fulfillment of all reverse logistics processes, which lets the company focus on its key functions and operations.request proposal

Easier inventory management

When a company outsources its reverse logistics, it helps them to attain better inventory management levels. By relying on third parties, companies can focus on their actual inventory and not worry about SKU numbers, storage, and transport of reverse logistics. As a result, there will be fewer errors or delays in shipping new products to consumers and meeting ever-decreasing delivery windows. Also, companies cannot track what products consumers are more likely to return to based on malfunction. This translates to the fact that the concept of predictive inventory management and forecasting for reverse logistics could eat away the company’s profits. But with outsourcing, this burden is transferred on to another company.

Better flexibility

In the current dynamic market scenario, the ability to quickly respond to changes is a critical factor for success. Especially in this era where customers are armed with the power of social media and the internet, they can change their opinions and decisions almost immediately. Hence, modern businesses need to be flexible to meet these changing consumer demands. As reverse logistics companies are built on the changing business of its partners, it can help companies increase their flexibility without increasing their budget.

Want to know how reverse logistics can benefit your business?

Contact US

SpendEdge’s Spend Analysis Assists a Renowned Reverse Logistics Provider Achieve Substantial Savings by 15%

Overview of the logistics industry

In the recent years, the logistics industry is witnessing robust challenges in terms of high operation costs, low margins, and a shortage of talent. To address these challenges, prominent organizations are planning to streamline their service capabilities to improve delivery performance and increase customer satisfaction levels. With the rising demand for one-stop solutions, businesses are entering mergers and acquisitions to tap potential markets and enhance their functional capabilities. Moreover, the growth of reversed logistics space can be attributed to factors such as robust GDP growth, globalization, and increasing foreign direct investment.

Some of the factors curtailing the growth of the reverse logistics space are:

  • Tracking warranty: As reverse logistics involves the process of replacing commodities directly from the customers, it becomes difficult for the companies to track the warranty of the products. In the case of third party repair by an OEM, it becomes essential for businesses to track those secondary warranties and generate appropriate claims for the warranty service offered.
  • Improving efficiency: As the reverse logistics space is witnessing relentless competition with the presence of a considerable number of competitors, it becomes essential for the businesses to leverage technological capabilities to streamline their work and deliver efficiency. With the help of advanced software, the company at large can become much more productive and offer seamless and reliable services to the customers.

The Business Challenge and Our Journey

The client, a renowned reverse logistics provider, wanted to accurately classify the spend and gain better visibility into their overall process. With the help of industry best practices, the client wanted to efficiently streamline their process to identify critical savings opportunities in an easy manner. Moreover, through a robust spend analysis solution, the client further wanted to gain accurate, consistent and timely insights into the spend and accelerate their decision-making process.

To identify and calculate the market trends of commodities, the procurement experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the reverse logistics space. To identify the potential bottlenecks, the experts also compiled information across a wide array of reliable sources trade shows, industry forums, and company presentations.

The spend analysis solution offered by SpendEdge assisted the reverse logistics provider to compare the spend with that of the industry peers and gain substantial savings. Moreover, the solution also helped the client identify bottlenecks in terms of fraud and non-complaint activity and prioritize savings opportunities.

Fundamental questions answered in this spend analysis solution include:

Sp- spend analysis

The Results

During the course of the engagement, the reverse logistics service provider was able to identify and prioritize sourcing opportunities and devise an effective spend management strategy. In addition, with the help of the spend analysis solution, businesses leaders can monitor performance on the KPI’s and gain granular insights into the spending trends and buying activities. The solution also helped the reverse logistics client understand the products specification including the quality, availability, and service requirements.

To know more about our spend analysis solutions

request free proposal

Related posts:

Benefits of Warehouse Management System

A modern-day warehouse has to deal with large volumes of goods flowing in and out of it. The warehouse also has to manage recording item details, where it is stored, where it is to be sent among others. Manual systems may not be able to cope with such large volumes of data which has to be processed and retrieved instantaneously. This is where a proper warehouse management system (WMS) can contribute to increasing the efficiency of warehouse and in turn contribute to the company’s supply chain. A warehouse management system can be a standalone application or a part of an ERP system which enables centralized management of tasks SE_Demo2regarding inventory tracking and processing. Numerous have elevated the capabilities of warehouse management system to perform data-intensive tasks and incorporate RFID and voice recognition technology to enable automation.

Benefits of warehouse management systems

Space savings

Reducing the amount of clutter and properly organizing stocks can lead to savings in warehouse space. A warehouse management system allows the warehouses to properly organize the goods in such a manner that they take up less space. Enabling accurate stocking, slotting, and pulling of orders gives in-depth insights to companies in how much stock is needed so that they can procure only the required amount and avoid overstocking.

Reduces equipment wear and tear

Warehouses are filled with stocking and moving equipment including trucks, pallet jacks, forklifts, and carts. The more these equipment are used in a single day; the more vulnerable they are to wear and tear decreasing the life expectancy of the equipment. Increasing the machine idle time will ensure that the machines last longer. So, a warehouse management system can increase the machine idle time by eliminating the need to stock, pick and reset unnecessarily. They do so by reducing redundant picking routes, managing inventory optimally, and decreasing the per-equipment cost of shipping.

Reduces security vulnerabilities

Security is of the utmost importance in a warehouse. There might be instances of pilferage and theft within the warehouse by employees, which can be easily manipulated by changing stock numbers in a record keeping system. An effective warehouse management system will keep up-to-date records of inventory and provide authorized access to specific users. Instances of tampering can be easily identified with user-specific logins. Furthermore, automated systems like RFID can effectively eliminate such activities by keeping real-time information on inventory levels.

Increases customer satisfaction

A proper warehouse management system keeps accurate track of inventory levels and reduces errors in order fulfillment process. Eliminating such errors means that wrong deliveries are avoided, which would result in dissatisfied customer and increased costs in terms of reverse logistics. It results in goods getting delivered in proper condition to the correct customer each time, which increases the customer satisfaction levels and decreases the number of customer complaints.

Boosts workforce productivity

A typical warehouse is a very busy place with workers hustling and bustling to receive, stock, and dispatch items. A typical worker would have to move around a lot making multiple trips to the same place and also making additional trips to rectify errors. A warehouse management system reduces such errors and ensures optimal stocking so that workers would have to move around less within a warehouse. Additionally, it also reduces overexertion and allows workers to pick up more items in less time thereby increasing efficiency in order fulfillment. This may also result in the organization needing lesser workforce due to higher productivity gains saving them in labor costs.

For more information on benefits of warehouse management systems (WMS), warehouse control systems, inventory management software, facilities management, WMS solutions, and logistics and supply chain management:

Get More Info 

Related Articles:

Impact of Autonomous Vehicles in the Logistics Industry

Numerous technologies have evolved in the recent times that look to radically alter the working of the logistics and supply chain industry. From 3D printers, workplace automation, and AI to big data all look like a promising tool to substantially increase efficiency and save costs. Autonomous vehicles or self-driving cars are amongst the latest technological innovation that seems set to impact the field of logistics widely. Sophisticated computer navigation, GPS technology, camera technology, and sensor technology together hasSE_Demo2 made it possible for vehicles to be driven without human intervention. Apart from the automobile companies, technology giants like Google and Apple have also invested heavily in this technology. So how exactly will autonomous vehicle impact the logistics industry:

Improved Safety

Although earlier in the year Google’s autonomous car crashed in Mountain View, people began to jump to the conclusion that using such technology in the logistics industry is unsafe. But people fail to address the success rate where it had already driven more than 1.4 million miles without a single incident. For comparison, the accident rate for cars driven by humans stands almost at two crashes per million miles. By eliminating driver related errors, autonomous cars significantly improve vehicle safety and ensure that the goods reach the destination safely.

Increased Efficiency

Self-driving cars are highly efficient and can make a split-second decision which humans cant possibly perform. With a little assistance from AI technology, an autonomous vehicle can crunch mountains of data to come to a decision, that too in a matter of a fraction of seconds. The autonomous vehicle can efficiently identify best travel routes to minimise time on-road, avoid traffic jams by following lanes rules, and drive at optimum speed and employ platooning to maximize fuel economy. Considering the savings in fuel and quicker delivery times, autonomous vehicles can vastly improve the performance of logistics companies.

Cost Savings

It is already evident that with advanced decision-making capabilities autonomous vehicles can save fuel and time costs. Additionally, improved safety will also avoid damage costs as well as insurance costs. As a result, insurance companies would be willing to accept a low premium amount for autonomous cars in the future due to their low error rate. Also, logistics companies will also save on personnel costs which is currently a significant part of the transportation costs.

For more information on how autonomous driving technology and autonomous vehicles will impact the logistics industry:
Get More Info

Related Articles:

procurement risks

A Futuristic View of the Logistics Industry

What will the future of logistics industry look like? Will it be as easy as ABC when the teleportation technology is finally ready? That may stand true in a very far future, but the technologies and developments at present doesn’t look to disappoint the logistics industry either. A number of disruptive technologies including IoT, autonomous vehicles, blockchain, robotics, and predictive analytics are impacting how the logistics industry will function in the near future. Such unprecedented change in technologies is bound to drive the supply chain to be leaner, faster, and automated. That’s a huge sigh of relief for procurement professionals who are having sleepless SE_Demo2nights due to increasing overheads and pressures to meet customer expectations.

The Future of the Logistics Industry

Underground Freight Networks

Today, the majority of the consumer commodities such as water, gas sewage, and oil are transported through underground pipelines. In the near future, delivery of the consumer goods may follow the same path. Some countries in Western Europe are already testing out ways to transport consumer goods through automated subterranean networks. For instance, in Belgium, the University of Antwerp started working on a project “Underground Container Mover” that would transport large 40ft containers along a 21km long conveyor belt carrying 5,500 shipping containers each day. Such systems would enable a constant flow of goods without the worry of traffic and accidents.

Autonomous Fleet

Fuel and vehicle costs are not the only major cost components for goods transportation in the logistics industry. The vehicle has to be manned by drivers and delivery personnel, which incurs costs. Also, drivers and delivery personnel can only perform a certain amount of deliveries in a day. So the companies in the logistics industry are looking at autonomous fleet solutions to solve such issues. One of the most popular solution in this regard is drone delivery which has been optimistically looked upon by Amazon. Autonomous vehicles are also making its way in the warehouse in the form of vision-guided fully autonomous mobile robots, which can automatically process orders and move inventory across the warehouse.

E-Brokerage Platforms

Digitization has highly influenced the logistics industry. The growth in e-tailing and connectivity technologies have brought in new solutions for the logistics industry. Digitization in trucking has forced traditional freight brokers to revamp their business model towards mobile freight brokerage solutions. Companies are looking to implement uberization of trucks in order to utilize empty spaces and contribute towards the sharing economy. In the future, apps may be able to match truck drivers with shippers requirement on routes, rates, and schedules. Such apps can also automate the delivery dispatch, status change, load-finding, and driver payment processes. The end result would be savings in operating and fuel costs by improving asset utilization.

For more information on the future of logistics industry, supply chain technologies, and autonomous fleet systems:

Get More InfoRelated Articles:

Undeniable Benefits of Warehouse Automation

Automation is the most trending topic in the 21st century as all industries are embracing the technology to attain multi-fold productivity gains. Automation has been widely used in the manufacturing industry to reduce human efforts and errors. However, other business areas and industries are already looking at automation to be the gamechanger, one such area being warehouse automation. Warehouse automation includes the use of control software and radio data terminals to make simple decisions on storing and indexing items. Additionally, automation can also be used in a warehouse with robots, automated cranes, sorting machines, andSE_Demo2 conveyors. So how can warehouse automation benefit the organization?

Benefits of Warehouse Automation

Increase Efficiency

The efficiency of warehouse highly depends on quickly identifying where every product is located. Previously, warehouse staffs relied on manual indexing systems to find where each item is located which took a lot of time. With warehouse automation retailers can instantly locate any of their inventory eliminating all possible human errors. Additionally, centralized data systems keep managers and other personnel connected continuously with real-time access to data on inventory and shipments. Such systems usually use barcodes and RFID to track each SKU’s, their origin, location, and destination.

Eliminate Errors

Mistakes made in the warehouse not only increases waste and reduce efficiency but also decreases the customer satisfaction when wrong products are delivered. Additionally, if the product is lost or misplaced, retailers not only lose the price value of the goods but also potentially lose business with customers. Also, they will have to allocate valuable personnel time to deal with the mistake and compensate for the error. Bar-code and RFID technology can display all information of a package including who, when, and where to deliver. In addition to that, such technologies can be programmed to sort each item automatically based on where they are to be shipped.

Reduce Physical Footprint and Energy Usage

Since RFID technology allows real-time tracking of goods in a warehouse, a company can maintain low levels of inventory efficiently. Additionally, using warehouse automation technology such as AS/RS minimizes storage space and maximizes inventory handling efficiency. Lower warehouse footprint typically requires lower energy to light, heat, and cool the facility. Also, energy use in moving product from point A to point B is also drastically reduced due to smaller distances.

Reduce Staffing Requirements

Adopting warehouse automation eliminates the need to hire too many employees unnecessarily. Since all tasks of checking in products, sorting, and dispatching are automated, fewer employees are sufficient. Firstly, it reduces the chances of work-related injuries as dangerous jobs are taken care by automation. Additionally, it also saves costs and decreases the carbon footprint of the overall operations.

For more information on warehouse automation, automated warehouse system, inventory management software, warehouse management system, and warehouse robots:

Get More Info

Related Articles:

Top 5 Logistics Companies Across the World

Logistics is a critical part of any company’s supply chain as it ensures optimal flow of things between the point of origin and the point of consumption. The term logistics encompass not only the physical items like materials, equipment, and vehicles but also abstract terms such as time and information. Businesses usually manage their own logistics or outsource it to third-party logistics service providers (3PL) for their needs. Logistics companies depict expertise in material handling, integrating information flow, inventory management, packaging, warehousing, production, and security. Most logistics companies handle various aspects of logistics including inbound logistics, outbound logistics, procurement logistics, distribution logistics, disposal logistics, reverse logistics, greenSE_Demo2 logistics, emergency logistics, and digital logistics. Since logistics is such a vital function for every business, who are the top logistics companies in the world?

Top Logistics Companies in the World

DHL Logistics

Today, DHL has become a household name when it comes to logistics services. DHL serves both individuals and business customers with solutions which includes warehousing and distribution, customs, insurance, supply chain solutions, freight transportation, and industry sector solutions. With its vision as “The Logistics company for the World,” DHL employs 325,000 people across three significant regions namely the Americas, Asia Pacific, and Europe. People trust DHL across the world to send urgent documents or goods reliably in a very short time. The company is now focused on developing green solutions by providing Green Express Shipment, Green Mail, and Parcel Shipments. In the fiscal year of 2016, the company reported worldwide revenues of 57 billion euros.

UPS Supply Chain Solutions

UPS Supply Chain Solutions is an American messenger company started by James Casey in 1907. Initially, it started out by delivering packages, but now it offers services including contract logistics, consulting services, industry solutions, transport and freight, and customs brokerage. The company offers its services to industries such as healthcare, industrial manufacturing, aerospace and defense, automotive, customer services, professional services, and hi-tech. They believe in the importance of business sustainability and thus have increased their efforts to help small start-ups and e-commerce business by taking care of their supply chain. The company has grown significantly with numerous merger activities which include Haulfast, Menlo Worldwide, Carryfast, and Parcel Pro.


FedEx is the company giving serious challenge to the market leader DHL operating with a fleet of 325,000 employees across the world. Their service range includes post-delivery, express mail, third-party logistics, and freight forwarding. The company is known for shipping packages overnight and inventing real-time package tracking system which can find lost packages as well. In order to expand its global operations, the company has undergone mergers and acquisitions with companies such as GENCO, Bongo International, Supaswift, Opek Sp.z o.o., TATEX, and Rapidão Cometa. As a part of sustainability measures, FedEx has installed solar panel fields at certain facilities to reduce carbon radiations and also built all-electric trucks under their EarthSmart initiative.

SNCF (Société Nationale des Chemins de fer Français)

The SNCF Group is France’s state-owned railway company that employs 180,000 people across the world. The company provides full range mobility solutions including Proximities, SNCF Infra, Logistics, Voyages, and Connexions. Its logistics division formerly operated under the name SNCF Geodis. It is amongst the top transport and logistics companies in France and fourth overall in Europe. The company has accumulated expertise in road transport, supply chain optimization, freight forwarding, distribution, contract logistics, and express delivery over the years. The company has transports 3 million vehicles every year with 3200 trucks and wagons in their STVA fleet.

Kuehne + Nagel

Kuehne + Nagel was started by August Kühne and Friedrich Nagel in 1890 in Bremen, Germany. The company is currently headquartered in Switzerland and provides supply chain solutions to industries like aerospace, FMCG, hotels, marine, and forests. Their product and services portfolio include airfreight, sea freight, over-land, contract logistics, and integrated logistics. The company is also considered one of the best sea freight forwarder in the world achieving double-digit growth year on year. The company also earned Global Cargo 2000 Phase 2 certification for their cargo forwarding works. Apart from sea freight forwarding the company is also a close market leader in contract logistics and lead logistics.

For more information on top logistics companies in the world, contract logistics, freight forwarding, reverse logistics, integrated logistics, and supply chain management:
Get More Info

Related Articles:

Why We Love Sharing Economy (And You Should, Too!)

Companies have started worked tirelessly and have adopted innovations to increase the efficiency of their supply chains. After a point, most of them have started to hit a brick wall in terms of making the supply chain efficient. In a bid to further enhance their productivity and operations, companies have started to look beyond their four walls to build a global supply chain. The most lucrative alternative available to them outside their own supply chain is sharing economy. For a long period, organizations have had a fragmented supply chain with complex structures, with each step in the chain adding more complexity and costs to the overall operations. However, sharing economy arrives as a solution, which provides the ability to use untapped assets and resources. So what is giving rise to this sharing economy?SE_Demo2

Rising Consumer Expectation

Consumer expectation has increased to a level where it’s threatening the survival of even the established companies. Consumers are increasingly demanding instant error-free deliveries, which is forcing the retailers to develop their fulfillment centers in order to quickly respond to customer orders and simultaneously re-stock at a faster rate. Such actions significantly increase the costs for the retailers. As a result, they can turn towards sharing economy by sharing warehouse space and logistics mode to maintain optimum inventory levels and push towards full resource utilization. For instance, Uber Freight is using software to help drivers avoid traveling without a full load which will automatically reduce the transportation cost per shipment along the environmental costs.

The Rise of Autonomous Vehicles

The American Trucking Association has continuously predicted a growing shortage of drivers in the near future provoking logistical players to invest in autonomous vehicles. Self-driving cars can to operate at a higher frequency, and calculate the best shipping routes saving fuel costs. Logistical players like Uber have offered services like rent-a-van in Hong Kong which allows same vehicle to be used by multiple companies at different times to serve their logistical needs. This service hugely reduces the logistics costs of companies who would otherwise have to invest large sums in their own supply chain.

More Deliveries at the Same Cost

Unpredictable consumer demands urged retailers to restock the items on a regular interval. Such actions consequently led to manufacturers increase the frequency of deliveries which meant delivering trucks which were not entirely full. The same problem was faced by Kimberly-Clark professionals who wanted to shorten the replenishment cycle and deliver full truckloads without incurring additional transportation costs. The professionals resorted to sharing economy by teaming up with another company making shipments to similar retail stores. As Kimberly-Clark and its partner shared half space each in the truck, they could increase their delivery frequency without incurring additional costs.

For more information on sharing economy, shared logistics, collaborative economy, peer to peer economy, and sharing platform:

 Get More Info

Related Articles:

Request free proposal

Get unlimited access to our procurement reports library | Plans starting from $250/month Start FREE trial

SpendEdge Logo

Hello there!

Get in touch with our experts to know more about our subscription and customized research offerings.

We help businesses engage with right suppliers, boost cost savings, develop right benchmarks, and achieve sourcing excellence.

Cookie Policy

The Site uses cookies to record users' preferences in relation to the functionality of accessibility. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice