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XXL Platforms

Transportation cost is key

Transportation cost represents the highest cost of supply chain ahead of labor and real estate.

Indeed, even if it is easy to assess the mileage to be traveled, which is just depending of a given location, it becomes more complicated once the occupancy rate of the truck has to be taken into account, considering that it can vary by as much as 100%, depending on whether the truck is 50% or 100% full.

Taking into account if trucks coming empty or leaving empty, depends on whether it is a question of collection or delivery, as well as the competitive context of carriers has an impact on the cost per kilometer.

Logisticians are always looking to reduce the transportation cost. The pooling and massification are, obviously favorable solutions to mitigate this cost.

The pooling process

It happen when several manufacturers, who have not individually the critical size, will organize themselves, in order to have a truck 100% full.

For example, manufacturers in the agri-food sector or others delivering the same hypermarkets have an interest in unsing the same carriers.

The massification

Logistician operators acting on behalf of manufacturers who decided to outsource have an interest in developing XXL platforms in which they will welcome “industrialists” from the same economic sector and therefore sometimes competitors, with the same distribution targets. They will thus be able to consolidate transport.

Schemes of pooling and massification are particularly efficient in the case of mass distribution. Indeed, the relative transportation cost of beans is significantly higher than the one for a spare piece of a machine or an automobile because of their higher cost price.

The solution: XXL plateforms

XXL logistics platforms for multi-clients are an efficient solution allowing to reduce transportation cost, labor cost and real estate cost.

The settlement challenge consist in the resistance of competitive industrials to keep their know-how confidential.

Diagram of rationalization of the entire transport demand of the supply circuits

A maximum of trucks fully filled lead to transportation costs reduction.