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Horizontal Collaborationin Sweden: Next Steps?

Helsingborg Workshop 20th Mar. 2015

© TRI-VIZOR 2015

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≡ Horizontal Collaboration is our core business

≡ Since November 2008

≡ Spin-off Company of the University of Antwerp

≡ 3 founders and shareholders

≡ Neutral and independent

≡ Strategic Advisory Board with captains of industry(BASF, Nike,…)

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3 steps to create horizontal collaboration:

« Successful collaboration is not a matter of chance. It is the result of a process.»

www.co3-project.eu

CO³ Methodology

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TRI-VIZOR Cross Supply Chain® Consolidation Methodology

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Cross Supply Chain® Database

TRI-VIZOR searches for collaboration partners among:

≡ 150+ companies (mostly large shippers)

≡ 110.000+ transport lanes

≡ And growing…

Pharma & Healthcare

Chemistry

FMCG & Food

Automotive

High Tech

OtherLSP

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Smart Network Visibility (Big Data):synergy detection & matchmaking

Our datamining software automaticallyscans for network overlap & bundlingopportunities across more than 150

multinational shippers.

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Legal context: EU anti-trust

A) Cartel prohibition (Art. 101 EU), but is not prohibiting cooperation between non‐competitors; -> OK cooperation between competing companies that cannot independently carry out the project or activity covered by the cooperation - OK

B) EU Guideline (2011/C 11/01) on Art. 101 EU ‘horizontal co-operation agreements’ is not prohibiting Horizontal Collaboration, if using a trusted party (eg ‘joint purchasing organisation’)

Legal role of Trustee to comply with EU law: no direct information exchange between the parties trustee does not compete with the parties on the selling market, all information necessary for the purchases is only disclosed to the joint purchasing organisation, not to the other parties example: quality specifications, quantities, delivery dates, maximum purchase prices

Horizontal co-operation agreement is not violating EC Competition law ! Recommendation: Use a neutral trustee to avoid anti-trust !!!

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• The trustee is an essential new player to manage horizontal collaboration

• It can perform multiple functions:

• Offline: Neutral external support to the collaborating shippers

• Online: Neutral real-time coordination of daily collaboration process

Examples of online functions:

• Loads combination and synchronization

• Prioritization

• Real-time network orchestration

• ICT Interfaces

• Incident management

• “Collaborative Control Tower”

Examples of offline functions:

• Matchmaking

• Create critical mass

• Stability and fair gain sharing

• Legal compliance

• Entry and exit

• Conflict resolution

• Data confidentiality

• Audit

Roles and Added Value of Neutral Trustee

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Example 1:Province of Gelderland (NL)

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Starting point: regionalfreight flow collection (=“Phase 1”)

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Participating companiesThe following Gelderland shippers made their freight flow data available:

≡ Akzo Nobel, Arnhem

≡ Apeldoorn Flexible Packaging, Apeldoorn

≡ Evers Specials, Nijmegen

≡ Intersnack, Doetinchem

≡ Paperlinx, Zutphen

≡ Plieger, Zaltbommel

≡ PON (Continental Barneveld & Motrack ‘s Heerenberg)

≡ Sealed Air, Nijmegen

≡ Tegelgroep Nederland, Andelst

≡ THR, Apeldoorn

≡ TKF, Haaksbergen

≡ VDL, Apeldoorn

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Data preparation

≡ The collected flow data were cleansed and converted into standard format by TRI-VIZOR

≡ Geocoding of origin/destination locations (=conversion to XY-coordinates) to enable further automatic processing

≡ The shipper data were then merged into 1 project database:

≡ 12 shippers

≡ 4.512 transport lanes

≡ 57 countries

≡ 2.426 unique O/D locations

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Synergy analysis

1) Internal bundling analysis: between Gelderland shippers

2) External bundling analysis: between Gelderland and other shippers

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Gelderland: example of possible quick win (co-loading)

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Example 2:Danish Company (2015)

Origin

Destination

© TRI-VIZOR March 2015 – Example used with permission

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Danish Co. matchmaking results:5 possible quick wins

© TRI-VIZOR March 2015 – Example used with permission

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Neutral Trustee also helps withpartner selection & strategic alignment

strategic fit

economic

and operational fit

trust and resources

cultural

fit

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Orchestration: Synchronization of flows

X Y Z

X Y Z

Traditional Groupage Active Orchestration

≡ 9 shipments

≡ Avg. fill rate: <57%

≡ Cost savings: <5%

≡ 5 shipments

≡ Avg. fill rate: 80%+

≡ Cost savings: 10%+

≡ Sustainable

≡ Service level

Company Company

Mon

Tue

Wed

Thu

Fri

Mon

Tue

Wed

Thu

Fri

W

e

e

k

W

e

e

k

© 2015 4PL

1 shipper N shippers

Role of Logistics Service Providers:From 3PL to 4PL to 5PL?

5PL

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≡ The old logistics paradigm is no longer working

≡ Europe needs a quantum shift in logisticsefficiency, effectiveness and sustainability

≡ Horizontal collaboration is the “next big thing”

≡ EU law permits competitors to work together

≡ But… pay attention to legal aspects (anti-trust)

≡ Neutral facilitators/Trustees are essential

≡ Big data analysis, methodology and ICT are key

≡ Start small, then scale up

≡ First movers have already started !!!

Conclusion

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Questions?Next steps?

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TRI-VIZOR NVWaterfront Research Park

Galileilaan 18B-2845 Niel (Antwerp South)

T: +32 3 292 62 10F: +32 3 292 62 11www.trivizor.com

info@trivizor.comsven.verstrepen@trivizor.com

Mob. +32 498 51 81 67