Collaboration between vertical supply chains has existed for decades. In vertical collaboration, organizations within the same supply chain collaborate. They collaborate to improve functions like forecast accuracy or inventory management.
Horizontal collaboration, on the other hand, is the latest phenomenon. In this, companies at the same level of the supply chain work together. One example of horizontal collaboration is between suppliers and buyers.
Collaborative Shipping is an example of horizontal collaboration in transportation and logistics. It ensures that information sharing from the supplier to the shipper is enhanced to provide high visibility throughout the network. Increased visibility enables a grander scale which facilitates a modal shift for the supply chains. This holistic perspective across supply chains delivers various benefits over traditional individualistic systems. The benefits include higher vehicle fill rates, overall cost reduction, and even lower emissions. Collaborative Shipping can combine multiple functions, from order receipt to transportation, distribution, and storage. It can reduce the number of vehicles and positively impact urban traffic conditions and global warming.
Such optimization is hard to achieve through traditional systems which use traditional methods like phones and emails. Much time is wasted reading and replying to emails. It is a significant loss of time and efficiency. But, there is a simple solution to this difficulty.
Collaborative Shipping is exactly what it sounds like. Supply chain-wide information sharing helps reduce the number of shipments and maximize utilization resulting in savings.
Benefits of Collaborative Shipping
There are five significant benefits of using a collaborative platform. These benefits can be extended by the companies to their partners as well.
- Improved Visibility and Control
Turvo’s Collaborative Shipping Solutions provides excellent control over shipping processes. Quick updates about critical issues are shared using a collaboration platform. With real-time updates, businesses will be able to concentrate on resolving these issues instead of spending efforts on identifying them. The logistics team will be more proactive in addressing problems. Such problems may otherwise lead to severe implications on the supply chain.
- Real-time decisions to manage shipments
Collaborative Shipping uses data to make informed judgments to drive cost-effectiveness. It establishes a centralized platform of streamlined logistics. This avoids manually reaching out to locate partners and sharing information or exceptions manually. Collaborative Shipping also guarantees incredible carrier efficiency, the lowest carrier costs, and significant lead-time reductions. In case of sudden changes, it enables the teams to make decisions on the fly and switch to Plan B without losing time.
- Reduced administrative tasks
Collaborative Shipping’s automated features help replace manual, repetitive processes. It replaces unnecessary paperwork with a digitally-enabled solution. Real-time scheduling enables users to access instant information, allowing for negotiated pricing and delivery schedules in one convenient system. Document management is simplified and standardized, thanks to customizable templates. Optimizing the information flow allows for quick access to real-time data.
- Lead-time and Cost Savings
Collaborative Shipping uses data to make informed decisions which save time and labor hours. It can do this while boosting the service levels. It guarantees maximum carrier efficiency, lower carrier costs, and significant lead-time reductions.
- Higher Customer Satisfaction, higher collaboration, and long-term relations
The Collaborative Shipping solution equips the Customer Service team when interacting with customers. It provides them with excellent visibility of the shipment and empowers them to make the optimal decision for the customer and the company. Collaborative Shipping provides a rich customer experience, leading to increased client satisfaction, resulting in repeat business.
Achieve great ROI with Collaborative Shipping
Today, most companies operate through global sourcing and a global supply chain (GSC). This globalization is due to increased competition and narrowing profit margins. Collaborative Shipping can quickly provide a high return on investment (ROI). It helps companies navigate the complicated world of carrier selection, rate bidding, route optimization, and other such issues.
If you are looking for great TMS solutions, Turvo is the right partner. Turvo provides the world’s leading Collaborative TMS application designed for the supply chain. The technology unifies all systems, internal and external, providing one end-to-end solution. It helps with operations and analytics while eliminating redundant manual tasks through automation. Turvo’s customers include Fortune 500 logistics service providers, shippers, and freight brokers. Turvo is based in the San Francisco Bay Area with offices in Dallas, Texas, and Hyderabad, India.