Time to Think Outside the Truck
One more sign that we’ve reached a tipping point in the way businesses look at their logistics and distribution systems: British electronics chain PC World is sharing delivery-truck space with a sister company. Think that’s all well and good for businesses that operate under the same corporate umbrella, but don’t see the value for a company like yours? Have you checked the price of diesel lately? By Phil Berry
We have been living with logistics models based on cheap oil, in this case cheap diesel. Sharing trucks has always made economic sense for a large number of businesses who chose to own them but didn’t fully utilize them.
Now that diesel is about to hit $4 per gallon, its time for new business models. Certainly, not many businesses have local corporate partner in the same neighborhood to share trucks. That doesn’t negate the value or the business sense of the idea.
My grandfather raised corn in Ohio. He owned a tractor because it made financial sense to do so. But he never owned a harvester or a combine; they were too expensive to own and operate. He was part of a cooperative that owned and shared the costs of that equipment because it made more economic sense.
I smell a business opportunity. The business model would be similar to the Flexcar model for car sharing. Is someone out there interested in starting a truck-sharing company?
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Phil Berry has spent the past 30 years implementing corporate sustainability and lean manufacturing programs at companies large and small, most recently for a global apparel manufacturer. He has worked with more than 400 organizations on five continents (particularly in India and southeast Asia), advising on core product design functions such as waste minimization and toxics reduction. Phil is SLM's expert-in-residence on sustainable product sourcing and innovation, as well as the host of Sustainable Sourcing Update.
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