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2010-2011 European Supply Chain Horizontal Collaboration Report
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European Supply Chain Horizontal Collaboration Report 2010 – www.eft.com/HC
For more information, visit www.eft.com/HC 2
Table of Contents I. Introduction ............................................................................................. 4
II. Methodology and Approach ............................................................... 5
III. Profile of Respondents .................................................................. 6
IV. Implementation of Horizontal Collaboration ..................................... 8 V. Levels of Horizontal Collaboration ..................................................... 11 VI. Drivers and Barriers for Horizontal Collaboration ............................ 14 VII. Conclusions ........................................................................................ 19
European Supply Chain Horizontal Collaboration Report 2010 – www.eft.com/HC
For more information, visit www.eft.com/HC 3
List of Charts Annual Revenue ......................................................................................... 6 Business Type ............................................................................................... 6 Shipper Industries ........................................................................................ 7 Timescale for Widespread Implementation of Horizontal Collaboration ............................................................................ 8 Change in Horizontal Collaboration Acceptance ................................. 8 Change in Horizontal Collaboration Awareness ..................................... 9 Methods of Finding Partners for Horizontal Collaboration ..................... 9 Level of Horizontal Collaboration for Shippers ....................................... 11 Participating in Horizontal Collaboration ............................................... 12 What shippers share during horizontal collaboration ........................... 12 Customer Requests for Horizontal Collaboration .................................. 13 Drivers Encouraging Horizontal Collaboration ....................................... 14 Drivers Prompting Investment in Horizontal Collaboration ................... 16 Barriers Stopping Further Investment into Horizontal Collaboration .......................................................................... 17
European Supply Chain Horizontal Collaboration Report 2010 – www.eft.com/HC
For more information, visit www.eft.com/HC 4
I. Introduction
Horizontal collaboration within the supply chain is characterised by a pooling of resources between manufacturers rather than manufacturers collaborating with logistics service providers or 4PLs (vertical collaboration). Common strategies include consolidation of goods flows, sharing of transport vehicles and network capacity, sharing warehouses, consolidating buying power and back office processes such as finance, administration, customer service, IT etc. Whilst not a defining characteristic, horizontal collaboration partnerships can frequently be the most fruitful when undertaken by semi or direct competitors. With transportation costs on the rise throughout Europe and increasing pressure to reduce spend, horizontal collaboration provides a unique solution to improving supply chain efficiency, asset optimisation, minimising the risk of emerging markets, and maintaining margin. The initiative is by no means a quick fix – it requires diligence, patience and internal support at all levels. However, horizontal collaboration in the supply chain is swiftly spreading and companies who ignore it will find themselves at a huge competitive disadvantage down the line. Some of the industry’s top leaders are already benefiting from horizontal collaboration in the supply chain and, as finding the most helpful information can be a difficult and expensive process, eyefortransport is producing the 2nd Horizontal Collaboration in the Supply Chain Summit (May 19‐20 at the Renaissance Hotel in Brussels) to provide a one‐stop‐shop education on this profitable initiative. The event will feature case studies and analysis from senior supply chain executives representing companies such as P&G, Fellowes, Henkel, Georgia Pacific, General Mills, HJ Heinz, Baxter, Johnson & Johnson, Panasonic, Schneider Electric, Arysta LifeScience, Nestle Waters and more. For more information on the Summit or the report, please visit www.eft.com/HC or contact McKinley Muir on the details below: McKinley Muir, eyefortransport World phone: +44 (0)207 375 7167 US Toll Free: 1 800 814 3459 Ext. 7167 Canada Toll Free: 1 866 996 1235 Ext. 7167 [email protected]
European Supply Chain Horizontal Collaboration Report 2010 – www.eft.com/HC
For more information, visit www.eft.com/HC 5
II. Methodology and Approach This survey was conducted in September/October 2010 with responses solicited by targeted e‐mail lists, select trade association memberships, various related‐industry databases and other targeted methods. The majority of respondents were key figures, representing major companies. No individual responses were analyzed, but rather all responses were consolidated.
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European Supply Chain Horizontal Collaboration Report 2010 – www.eft.com/HC
For more information, visit www.eft.com/HC 19
VII. Conclusions The analysis of our recent survey reveals that horizontal collaboration in the supply chain is indeed spreading – not only in terms of awareness and acceptance but also in practice. Companies are beginning to recognise the possibilities within this initiative and seek out the opportunities available. There are still obvious barriers (partner‐sourcing, Anti‐Competition laws and trust within partnerships) but with benefits such as dramatic reduction in the cost of distribution and transportation, optimised service levels and fuel efficiency, it’s clear that more companies are looking at horizontal collaboration as the next step in their supply chain. Finding out the right information about this initiative can be tricky and that’s why eyefortransport has gathered an incredible group of manufacturers, logistics service providers, retailers and subject matter experts to explore in‐depth case studies, methodologies and benchmark strategies regarding all facets of horizontal collaboration in the supply chain. Companies represented include: P&G, Fellowes, Henkel, Georgia Pacific, General Mills, HJ Heinz, Baxter, Johnson & Johnson, Panasonic, Schneider Electric, Arysta LifeScience, Nestle Waters and more. Join us to discuss these pertinent issues at the 2nd Horizontal Collaboration in the Supply Chain Summit, happening May 19‐20 2011 at the Renaissance Brussels Hotel. This is the only conference where you will be able to hear ground‐breaking horizontal collaboration case studies from industry innovators and discover the opportunities that will catapult your company ahead of the competition. Go to www.eft.com/HC for more information! For further details about the Horizontal Collaboration in the Supply Chain Summit, please contact: McKinley Muir, Global Events Director Eyefortransport World phone: +44 (0) 207 375 7167 US toll free: 1 800 814 3459 ext.7167 CAN toll free: 1866 996 1235 ext.7167 [email protected]
European Supply Chain Horizontal Collaboration Report 2010 – www.eft.com/HC
For more information, visit www.eft.com/HC 20
About eyefortransport Established in 1998, eyefortransport has become one of the leading providers of business intelligence, independent research, news and executive level events for the supply chain & logistics industries. eyefortransport has two primary focuses: 1) To provide executive networking opportunities in the supply chain & logistics industries via the more than 15 events we annually organize and host in North America, Europe and Asia and online via the tens of thousands of users of www.eft.com. The events are designed to complement and enhance the business connections available through our online network, and bring together the industry elite. Regularly attended by CEOs and senior management from the transport and logistics industry and Heads of Supply Chain of major companies, the events focus on current developments and latest trends, and are enhanced by high level, exclusive networking opportunities. 2) To deliver industry education through dozens of industry reports, surveys, newsletters, webinars and senior‐level presentations at leading events. For the list of current research, news and conferences we produce please visit www.eft.com