We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Companies increasingly willing to collaborate with competitors
Forward Thinking

Companies increasingly willing to collaborate with competitors

June 23, 2010
Supply Chain Quarterly Staff
No Comments

Would you collaborate with your competitor when it comes to supply chain management? A recent study found that a majority of companies would be willing to try working with their free-market rivals in order to cut shipping costs. In fact, a fair number have already done so.

The U.K.-based logistics research firm Transport Intelligence surveyed nearly 150 companies in Europe, North America, Asia, and Latin America on their attitudes toward multimodal collaboration in March. A surprising 94 percent of respondents said that they would consider collaboration with another company; cost reduction was by far the most important reason for doing so. A little over 38 percent would consider collaborating with a competitor, while the rest would prefer to work with a noncompeting company. Under the right circumstances—that is, if the collaboration were managed by a neutral third party—the percentage willing to work with a competitor more than doubled.

Interestingly, the researchers found that 43 percent of the poll takers had already tried some level of collaboration with a competitor in the past. Most of those respondents came from the retail or consumer goods sectors and described themselves as European or global organizations. Joel Ray, the author of the study and head of consulting for Transport Intelligence, said that most examples of shared logistics were taking place in Europe. Examples cited included Kimberly Clark and Unilever building a joint warehouse in the Netherlands, Sony and Samsung sharing a warehouse in the Netherlands, and Norbert Dentressengle managing a tire distribution center for Goodyear Dunlop and Continental in the United Kingdom.

Respondents whose companies have tried collaborating on logistics activities said that cost savings generally outweighed the efficiency gains. On average, companies achieved cost savings of between 6 and 10 percent. However, those in the retail, high tech, automobile, and chemical industries reported cost savings from logistics collaboration exceeding 15 percent.

Possible areas for collaboration

The survey asked respondents, "What are likely areas for collaboration with other companies?"

  • 40.2 percent said transportation
  • 2.1 percent said warehousing
  • 4.1 percent said value-added services
  • 53.6 percent said a combination of the above
[Source: Transport Intelligence, 2010]

  • Related Articles

    Survey: online consumers are increasingly willing to pay for fast fulfillment

    Collaborate with rivals? For some, it pays off

    Supply chain IT systems increasingly vulnerable to attack, analysts warn

Recent Articles by Supply Chain Quarterly Staff

BrightDrop delivers 150 electric parcel vans to FedEx network

Survey: 90% of procurement leaders will tweak operating models to cope with economic outlook

J.B. Hunt trials self-driving trucks in Texas pilot

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • How to resolve your inventory dilemma

  • Container prices continue to drop

  • Regionalized supply chains: the key to resilience

  • Warehouse vacancy rates sink to 27-year low

  • Empty shipping containers stack up at U.S. port depots

Featured Video

Cccb7d13 710a 4473 8132 da8b6cc286f1

The Sportsman's Guide Case study: Increasing Accuracy & Productivity

Viewer Contributed
Thanks to the Lucas Warehouse Optimization Suite, The Sportsman's Guide has increased productivity, reduced training time, and experienced a boost in accuracy for both full-time staff and seasonal employees. Want to learn how Lucas can help your DC be more efficient, accurate, and safe while reducing labor costs?...

FEATURED WHITE PAPERS

  • Case Study: Peak Teams helps boost headcount quickly on a short-term project

  • Breaking Bad: Conducting Full Truckload RFPs in the Age of Digital Freight Procurement

  • Omnitracs One – Last Mile Solutions

  • The enterprise shipper's guide to building a smarter truckload RFP

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing