The document discusses combining vertical and horizontal collaboration in transport optimization. Vertical collaboration involves supply chain partners, while horizontal collaboration involves other logistics service providers. The presentation notes that larger percentages of costs are from transportation and that customer service levels are strongly correlated with transportation performance. It advocates for collaborative approaches between supply chain members and logistics providers to optimize value, improve service levels and customer satisfaction, and potentially lower costs through increased efficiency.

1. Combining vertical and horizontal collaboration for transport optimsation Presented by: James Bake April 8 th , 2008

2. Customer driven supply chains and what this means for the management of freight transport

3. Larger percentage of cost of goods sold Strong correlation between customer service levels and transportation performance. IMPORTANCE of Transportation ?

6. Horizontal Collaboration - Involves other logistics service providers

9. SUPPLY CHAIN 2020

15. Traditional view Aim - Optimize cost (through lowest purchase price) Means - Adversarial (arms length negotiations) Scope - Purely Operational Supplier base number - Many Management - Short term contracts

16. Contemporary view Aim - Optimize value Means - Collaborative Scope - Strategic and operational Supplier base number - Selected few Management - Joint and on-going management

17. A collaborative supply chain simply means that two or more independent companies work jointly to plan to execute supply chain operations with greater success than when acting in isolation (Simatupang and Sridharan, 2002).

19. Customers, who are willing to share market information, allow their inventories to be co-managed with suppliers, build in understanding and flexibility into their relationship are able to show improved results (Harrigan, 1985).

21. Skylark is a telematic internet based system to meet haulage tracking needs. Created for three leading grocery manufacturers who collaboratively united to commission the system.

22. Value Optimization Improved Service Levels Visibility End Customer Satisfaction AND Potentially Lower Costs