Co-opetition: How Companies Use Asset Sharing to Overcome Logistics Challenges

Dedicated Transportation, Food & Beverage, Supply Chain
December 22, 2016

Reefer RentalLike most forward-thinking concepts in the supply chain space, the idea of “shared networks,” the “Uberization” of freight, and the optimization of the nation’s truckload capacity have been discussed at industry conferences and on webcasts, yet there are few real-life examples showing how it works.

The good news is that asset sharing—warehouses, trucks, and/or drivers—is helping companies meet the demands of customers and work more efficiently.

In addition, 30% of companies that outsource logistics are growing their usage of load sharing in particular, according to the 2016 Third-Party Logistics Study. As demand grows, logistics experts are positioning services to make sure their customers reap maximal benefits of sharing. Ryder, for instance, is developing LoadSmart to make sure trucks are packed to the gills, not only when they leave a factory or distribution center, but also on the way back.

With only so much warehouse and transportation space available, food companies are looking for ways to collaborate with peers, and even competitors, to drive efficiencies, improve service, and manage costs. With a client roster that includes the top 10 food and beverage companies in the United States, Ryder has helped build solutions for these companies by providing shared facilities and transportation networks.

Shared networks can quickly lead to improved asset utilization for companies, whether it’s warehouses or trucks. By sharing space, they are also sharing costs—which will lower their overall supply chain cost and improve cash-to-cash cycles. In California for example, Ryder works with two competing grocers who share fleet assets and drivers across their net¬works.

With stores needing to stock their shelves more frequently, while not keeping much inventory in the stock room, these grocers were tasked with sending smaller shipments closer to the time of sale. They were shipping at LTL rates, but through Ryder and its route optimization capabilities, the grocers were able to use the same trucks to ship their goods at preferred rates. This results in improved inventory and product fresh¬ness and cuts down on wasted deliveries. Plus, the shared network is smooth; the shipper has full visibility of its shipments, and is ensured its products reach the shelves on time.

Customers’ expectations are met, and the shipper benefits from lower transportation costs, improved on-time delivery, and higher customer service levels. As consumer demands grow and the speed of business accelerates, companies in some industries are looking at opportunities to share transportation and logistics resources for greater efficiency and faster delivery.

Companies in many industries, face common issues such as a shortage of drivers and capac¬ity fluctuations. They often have fleets traveling similar routes to the same or nearby destinations. Ryder also provides multi-client packaging and warehouse facilities. This allows companies to not only share warehouse space, but save on operating costs. Examples of this can be found in the consumer packaged goods, oil & gas, retail, and healthcare industries.

By offering multi-client ware¬house facilities and shared drivers and equipment, Ryder is helping these companies work faster and more efficiently. By outsourcing to a third party logistics provider (3PL) such as Ryder, shippers can outsource the disruption. Ryder sees these disruptions all the time, and because of its experience, we can see disrup¬tions before they come. Third party logistics providers, like Ryder, can help shippers reduce cost, increase efficiency, become more flexible, speed up their supply chain, and keep their products moving.

To find out more about Ryder’s solutions or to request more information, click here.

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