Sharing Economy is a trend, that has developed inconceivable in the last five years by the number of users and consolidated revenues. If in 2014 consolidated revenues of five key sectors of sharing economy - traveling, carsharing, finances, recruiting and content streaming was $15 billion, in 2025 it will reach $335 billion according to PwC. In 2019 more than 15% of the Earth population used collaborative services at least once.
Main drivers of collaborative usage are five factors: global economic recession, technologies development, millennials and their new way of consumption, the individuation of demand, and the fact, that convenience of sharing resources has gone beyond the convenience of their's ownership. For example, to move from point A to B on "common" car becomes easier, than to buy and maintain your own car.
The trend for common resources is relevant for all industries (FMCG, manufacturing, pharmaceutical, fashion), business models (B2B, B2C, C2C) and regions (cities and country). This model is a driver for conservative logistics sphere as well, that nowadays is shifting from manual and line process management to technological automation and collaboration.
Sharing model got major distribution in B2C due to aggregators for last-mile delivery. But it is still not so widespread in B2B and freight. But it doesn't mean collaboration is not demanded. We can see the strong demand for "Uber for Trucks" for example. The case is sharing and innovative technologies help the sphere to solve two fundamental problems.
First of all, this is a problem of logistics utilization. According to DHL researches: up to 40% of freight transportation is vacant today. Grouping of orders lets carriers fill the loading of transport volume to 100%, and lets consignors share costs among each other. Nowadays effectiveness of this scheme is provided by collaborative logistics IT-systems: consignors load orders into the platform, the system helps plan a route and set performer of transportation with the best rating in a moment. Technologies let plan and control transportations in real time via an algorithm of maximum economic effectiveness for all participants of the system.
The second problem, that sharing model can resolve is the management of peaks and realization of spot volume of transportation. Changes in customers behavior significantly shorten the cycle of delivery planning. If before a company planned for 2-3 days, now it has to provide delivery next or same day. Even more, delivery slots are getting narrow and customers have an opportunity to chose the time of courier arrival.
With the help of modern systems of logistics management, the prime time of loading could be forecasted sufficiently accurate. Along with it, a business should always have an opportunity to involve additional performers without a big waste of time and money. This explains a high demand for collaborative systems in food delivery and taxi. It is impossible to handle a splash of orders executively by one fleet of vehicles. Tightening of service standards makes shorter cycles of planning at every delivery stage. For example, today at freight we see the beginning of the same processes that are already developed in last-mile.
In common, sharing economy in logistics is future, where infrastructure is used effectively, and the quality of transportation meets clients' demand. The success of this model is provided by profit and will only grow in the future. However, for the wide-spreading of sharing economy, the market should solve 2 questions: safety and common logistics standards in different companies.
Safety of sharing logistics means the security of multiload or infrastructure elements at common usage, the safety of personal or commercial information while. Solution includes increasing of logistics transparency in common. Modern collaborative IT-systems let following and controlling absolutely all processes of logistics online.
In Atlas Delivery we put business, its logistics ecosystem and its contractors in single transparent working space, where they cooperate online. All, that consignors, carriers, logists, dispatchers, couriers, and other participants do influence internal rating KARMA. Carriers with best KARMA get orders first, consignors that pay in time and do not delay loading at warehouse get best performers and so on.
The second factor, that inhibits the growth of sharing logistics is a diversity of logistics standards and privacy of companies. Standards of planning and realization are different from business to business. Informational systems for logistics management are secluded and customized for a certain company. For "sharing" model usage companies should make an arrangement on how to organize transportation. For example, how many orders they load, how often, what requirements for the performer they have, how to produce paperwork, how to make payments and so on.
Usage of existing collaborative IT-platforms may make the process more effective. Due to Atlas, companies-consignors reveal problems in the supply chain: idle time in several days at the loading stage, big returns logistics because of delays of delivery. Collaborative transformation and automatization of logistics processes of consignor and carriers let decrease return logistics in 10 times, and increase in 2 times delivery at delivery time slot, in 1,5 times decrease idle time at the warehouse. Back to all posts