The sharing economy is not only fundamentally changing the tourism and mobility sector; it is also causing a shift from ownership to use in logistics. So concludes DHL in its report 'Sharing Economy Logistics. Rethinking logistics with access over ownership'. The report highlights 7 applications of the sharing economy in logistics.
1. Truly shared warehousing
Multi-customer warehouses are not new. Logistics service providers often use their storage space for multiple customers. Usually, however, the amount of storage space is fixed for a specific time, not taking into account peaks and troughs in the user's storage needs. Truly shared warehousing goes one step further. Today, drones and IoT can easily estimate available warehouse space. Should there be a surplus of space, users can offer that residual capacity via a digital platform. The advantage is that this means paying only according to usage.
A Dutch example of truly shared warehousing is Stockspots, a marketplace that goes live in October and makes residual capacities transparent. A logistics service provider looking for storage space for the months of January and February can search on Stockspots for a location nearby, or near the end user. The available location can indicate how much capacity is available and whether equipment and staff are also provided.
2. Urban discrete warehousing
It is estimated that two-thirds of the world's population will live in cities by 2050. As companies like to be located close to the end user, finding suitable storage and transhipment space is becoming increasingly challenging. Urban discrete warehousing involves the use of storage space in private homes, garages, empty rental properties and offices, for example. Here, too, available space is offered via an online platform, possibly in the form of an app. Users would be able to scroll through a list of images of available spaces nearby. Payment could be per square metre, per product or with a membership model.
3. Community goods on demand
Sharing housing via AirBnB and rides via Uber have become commonplace in recent years. But less valuable products are also increasingly shared. A Dutch example is the platform Peerby, where neighbours can borrow products from each other. Logistics parties can take advantage of this, for instance by offering on-demand delivery. US startup Shyp offers such a service. Users can upload a picture of a product. An on-demand courier picks up the parcel within an hour and also takes care of the packaging materials. Thanks to a collaboration with several parcel shippers, the parcel is sent to the right destination at the lowest price. Such a service not only saves consumers a trip to a parcel point, but also takes the packing and printing of a shipping label out of their hands.
Logistics asset sharing 4.
A car-sharing platform like Snappcar could also be applied by logistics companies. For instance, companies could rent out their idle vans to individuals in the evenings. Even forklifts or pallet trucks that are only in use on weekdays during working hours could be rented out to retailers on weekends and evenings, for example.
5. Transport capacity sharing
A much-discussed example of the sharing economy is transport capacity sharing. Research by Frost & Sullivan shows that one in four trucks in Europe and the US drives around empty. The other trucks are said to be only 50 per cent loaded. Meanwhile, startups that aim to tackle this problem are shooting up like mushrooms. These platforms provide real-time insight into available transport capacity and match shippers and carriers. Moreover, this model can also be applied to transport by water, rail and air.
6. On-Demand Staffing
The growing staff shortage in logistics is a challenge for companies, especially during peak times. To fill shortages, robotisation is increasingly being used for repetitive tasks. However, there is still a wide range of tasks that require employees' knowledge and flexibility. A sharing economy model could meet the staffing needs of logistics companies during peak times. Jobdoh, a Hong Kong-based startup has developed a location-based platform that matches companies with freelance workers. Freelancers are screened after signing up and then show them available jobs that match their profile. The platform also allows companies to hire a group of employees at once.
Especially in the last-mile, such a model can be applicable. With the rise of the sharing economy, consumers seem less bothered when their parcel is delivered by a private individual. This is reflected in the popularity of US start-ups like Postmates and Taskrabbit.
An additional advantage is that this way companies also reach staff who only want to work on a project basis.
7. Logistics Data Sharing
Logistics companies have a cargo of data, which is now often kept indoors. However, this data can be used to make cities more efficient and environmentally friendly. For example, transport companies can share their trip planning with various stakeholders in the area, such as the city administration. The administration can use this data to optimise mobility networks, as well as to measure CO2 levels in the city.
A central platform for data exchange between governments, businesses and consumers is crucial for the success of efficient cities, according to DHL. An example of this is the City Data Exchange platform in Copenhagen, Denmark. The platform uses public and private data combined with IoT solutions to drive innovation in the city. This should lead to improved living conditions, increasing economic activity and contribute to Copenhagen's ambition to be carbon neutral by 2025.
Shared economy not always welcomed with open arms
Risks also lurk with the Shared Economy. There are challenges in terms of strict liability, insurance and labour market legislation. One of the biggest problems is that legislation lags behind technological developments. The rapid emergence of technologies and initiatives, lead to protests among people and companies working in traditional industries. Governments in some cases even choose to ban innovations. To stimulate rather than inhibit innovation, policymakers and companies need to work together. Only then can all parties benefit from the sharing economy, DHL argues.
Editorial LogistiekProfs
View the full report here.
