Consolidation (including collaboration, transport bundling and route planning)
Logistics collaboration takes place between two manufacturing companies or between a manufacturing company and a logistics service provider. Horizontal collaboration takes place between two companies on the same level whereby vertical collaboration happens between companies that succeed each other in the supply chain. Two separate parties work together for the purpose of increasing efficiency in logistics processes, such as transportation and warehousing.
Transport bundling and consolidation of freight flows describe the situation where different shipments are grouped together into larger shipments in order to better utilise a transport vehicle’s capacity (increase the load factor) and positively affect the cost of transport per weight unit and inventory levels (reduction). Nevertheless, consolidation might negatively affect the delivery frequency and lead times.
Transport route planning and control covers the finding of the optimal route between point of origin and destination, and the tracking of the freight based on real‐time information.
Logistic postponement
There are three different types of postponement (time postponement, place postponement and form postponement. Time postponement is defined as delaying activities until orders are received. By contrast, place postponement means the delay of moving goods through a supply chain until orders are received. These two concepts can be subsumed under the term logistics postponement.
Logistics postponement is a widespread and often used principle in companies nowadays. Often it is used to delay the delivery of finished products to a region or a distribution centre until the demand is known with a higher degree of certainty. By doing so, companies are able to store units centrally and avoid high inventories at the respective distribution centres. This lowers inventory costs on the one hand and, on the other hand, reduces the risk of having a product in the wrong place at the wrong time. One practical implementation of logistics postponement is E-commerce. Products or modules are usually kept centrally and are assembled and delivered directly to the customer only on order. Thus, an immense increase in transport, predominantly truck transport, is the consequence. Generally speaking, it can be assumed that logistics postponement in a supply chain reduces the inventory level while often resulting in a greater amount of transport movements, because of the higher rate of single orders.
In accordance to the principles of assemble-to-order, form postponement describes the way of making a product suitable (customising) for a specific market or customer at the latest possible point in a supply chain, since every differentiation that makes a product more suitable for a specified segment of a market makes it less suitable for other segments.
Outsourcing
Outsourcing describes the (vertical) exclusion of logistic activities and services to external parties (2PL, 3PL, 4PL) that the company is not willing or unable to conduct in the future. Outsourcing is therefore related to a change in the organisational structure of a company. The counterpart of outsourcing is called insourcing, which means the vertical integration of logistic activities and services.
Supply chain integration
In integrated supply chains the boundaries inhibiting the flow of materials/products, financial resources and information are removed in order to optimise the overall performance of the supply chain. In order to effectively manage the complex flows among supply chain partners and to improve efficiency and customer responsiveness, integration among the various supply chain partners is required. Supply chain integration affects the organisation of the freight transport system. The more integrated the supply chain, the stronger the requirements for higher coordination and performance of the supply chain. The stronger the performance requirements, the lower the transport lead-time and the higher the quality of transport services (in terms of punctuality, safety of cargo, etc.).
Search for talent/staff retention
Staff retention and search for talent has become an important issue for the whole logistic sector, as the European population is ageing due to natural population development.