Collaborative Logistics Networks

Collaborative relationships between shippers and carriers (and between shippers) should result in greater efficiency and profitability, while satisfying the interests of all parties. An ideal collaborative logistics network should promote a high degree of visibility and activity coordination between multiple shippers, carriers, ancillaries and third-party providers. This results in optimum utilization of assets and benefits for all trading partners.

Collaborative networks employ customer-centric tools like tracking and tracing, which can be leveraged by the transportation service providers to better implement strategies like cost effective route planning, dynamic routing and rerouting. These networks can provide considerable savings on fuel, driver scheduling and help to avoid traffic congestion.

Shipper to shipper collaboration can mean co-loading trucks to make same route deliveries or co-occupying warehouses. Carriers gain by keeping their assets moving and full, assured of regularly scheduled assignments and hence dedicated revenue streams.

Unfortunately, I don't know of any examples of ideal collaborative logistics networks.

The ideal network should provide shippers with the mode and carrier that offers the best rates within the prescribed transit times. Unfortunately, I know of no optimizer currently on the market that does a good job of optimizing between LTL and parcel. This seems like a limitation that could be (may have already been) overcome by some software/application service providers.

There is another problem with providing this high level of optimization, tracking and tracing. The networks currently capable of providing this level of IT sophistication must force their members to operate within their four walls. I wonder how the same goals can be accomplished, while opening up the network to a much larger group of shippers, carriers, third parties and ancillaries, such as warehouses?

Any ideas?