In the fast-paced world of logistics, where supply chains stretch across continents and delivery windows are shrinking by the day, shared infrastructure plays a crucial role in keeping operations running smoothly.
Shared infrastructure refers to physical or virtual resources that are utilized by multiple individuals, organizations, or entities. Building and maintaining infrastructure can be expensive, and sharing these costs helps ease the financial burden on everyone involved. This shared approach allows businesses to save money by benefiting from economies of scale, making their logistics operations more cost-effective.
Think about ports, airports, and intermodal terminals – they act as central hubs where many logistics players come together, making it easier to transfer cargo between different transportation methods. Efficient road and rail systems, enable goods to move swiftly from one location to another, reducing transportation time and costs. Contrast this with the impracticality of constructing separate road networks for every logistics company or private warehouses for each retailer, which would be financially and environmentally unsustainable.
What role does shared digital infrastructure play in logistics?
In today's digital age, shared infrastructure extends beyond physical assets. Digital platforms and software tools provide businesses with shared resources that can streamline operations. These digital systems offer real-time insights, efficient planning, and collaborative data sharing, which fosters transparency and communication among logistics partners.
Consider the complexity of a typical 50-week contract with 10 origins and 10 destinations, equating to over 50,000 events to track. On any given day, unexpected issues can crop up, potentially leading to extra costs. Additionally, the use of different systems and performance metrics between shippers and carriers can cause challenges in managing exceptions and fulfillment, straining relationships.
NYSHEX serves as a prime example of shared digital infrastructure in the logistics industry. Uniting shippers, carriers, and NVOCCs together on a digital platform, NYSHEX digitizes commercial terms, provides performance visibility against mutual expectations, highlights shipments that are off track, and enables agile course corrections when exceptions occur. By leveraging technology already utilized by the world's largest carriers and hundreds of shippers and NVOCCs, the industry gains shared value, eliminating the need for each entity to create its own solution. The results are improved on-time delivery, effective and efficient resolution of operational issues, and avoidance of unnecessary costs.
In conclusion, shared infrastructure is the foundation of efficient, cost-effective, and adaptable logistics operations. Whether it takes the form of physical assets like roads and warehouses or modern digital platforms, shared infrastructure is the unsung hero that keeps logistics running smoothly. By harnessing shared infrastructure, the logistics industry can thrive while meeting the evolving demands of a dynamic world.