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Sharing Economy in the Logistics Sector
Sharing Economy in the Logistics Sector
In DHL's May 2017 Trend Report (Sharing Economy Logistics), the term "sharing economy" is defined as "the economic activity of digital platforms that facilitate transactions giving users temporary access rights to a service provider's underutilized assets, services, or skills." In this way, there is no change in the ownership of the transactions. It is also known as the "access" economy. The sharing economy is increasingly permeating all aspects of our daily lives and undoubtedly brings a number of benefits to those who participate in it.
We are seeing that the rise of the sharing economy in Europe is changing the business world – creating opportunities for new entrants, challenges for incumbents, and new questions for all parties. PwC's latest research on the 'Sharing Economy' shows the value of transactions in Europe's sharing economy at EUR 28 billion in 2015, and this figure is expected to rise to EUR 570 billion by 2025! To realize this potential and attract the mass market, sharing economy players need to address trust barriers and foster a culture of sharing.
Benefits of the sharing economy to the logistics sector:
The capital expenditure required for the supply chain, i.e., warehousing, transport, and fulfillment, is typically fixed, long-term, and expensive. Logistics infrastructure commitments are typically made over a five-year or longer timeframe, while the demands on that infrastructure vary significantly on a monthly basis. This is due both to seasonality and to an increasingly dynamic business environment. As a result, companies in the sector often experience under- or over-utilization of their assets. While some companies cannot find warehouse space for their products, some areas of warehousing companies may remain empty. By sharing resources, sudden peaks and troughs in warehousing demand can be smoothed out, resulting in lower costs for both parties. Furthermore, when companies making long-term logistics investments face a decline in demand for their products, they can sell logistics services to companies in need of warehousing. This directly generates additional revenue.
Businesses that leverage each other's logistics infrastructure, where and when they need it, operate with operational flexibility and much greater efficiency. There are numerous successful examples of the sharing economy in the logistics sector (DHL Report).
One of the core principles of the sharing economy is to unlock supply that was not previously on the market – lowering the cost of these services and creating a more efficient marketplace.
By using the Park Palet platform, you can generate income from your idle warehouse space or benefit from warehousing services with an on-demand model.
