Collaborative Transport in times of crisis

Collaboration is as old as society itself. It's the common thread of human evolution, so it shouldn't be different when applied to commerce and logistics: When we collaborate, we progress more.

For more than a decade, the concept of collaborative logistics has been used to refer to the cooperation between two or more companies to improve key aspects of the supply chain, such as costs and speed, for example, and thus gain competitive advantages, the which is especially important for companies for which logistics are strategic.

For this, a minimum common base is necessary, and that the member companies, as a single unit, share the Mission, Vision and Values ??of the new organization, leaving aside the competition, generating relationships of trust, with transparency about the information and a lot of effective and strategic communication, which in turn requires big data, systems integration and interconnection and traceability technologies in general.

Collaboration increases what can be achieved and minimizes negative impacts, especially when facing a crisis or major challenge. A clear and recent case is that of companies - even competitors - in Latin America, joining forces to send and receive products, after the international effects on logistics caused by the Russian-Ukrainian conflict and generating transport alternatives to avoid the new obstacles and at the same time to mitigate the effects of rising oil prices and the absence of Russian gas.

Petroleum products, as well as food (especially wheat) and fertilizers, imported from Russia by Latin American countries, saw increases from 22 to 80%. Such is the impact of a crisis that is geographically distant but close due to globalization and the interconnectivity on which international trade is currently based.

The benefits of collaboration

In logistics, when companies work cooperatively as a unit, they are able to create a differentiated value chain and achieve competitive advantages that they could not have individually, while contributing to the development of more sustainable and resilient networks.

Optimizing logistics in individual companies has its limits, and is often insufficient to successfully compete in today's market dynamics, but working together, in general, they can optimize and make better use of operations, to save time and money, and provide better service to your customers.

It should be remembered that many supply chain processes involve other companies, including manufacturers, distributors, transporters, etc., therefore, logically, the collaboration between these participants allows for great optimization solutions, and of course, benefits for all.

On the other hand, unity in the face of a crisis also helps reduce consumer uncertainty by achieving better risk management while ensuring better supply.

By sharing them, capacities are multiplied, which is very clear, for example, in transport. More routes are possible and also more savings, which can help to balance price increases that could not be foreseen, such as in the case of a crisis. And not only that, they can also make joint purchases to obtain better costs.

Finally, it also allows joint planning, which often results in better and more detailed plans, that is, an integral planning of the supply chain and the value network, with an end-to-end vision, benefiting all its participants.

In conclusion, collaborative logistics is becoming a must have to maintain a global level of competitiveness in companies and with the end consumer at the center of efforts. It remains for class and business associations to further encourage this type of joint work for the benefit of all.