Cruijssen Horizontal collaboration Flashcards
What is horizontal cooperation in transport and logistics?
Horizontal cooperation refers to collaboration between companies at the same level of the supply chain, such as competing logistics service providers (LSPs) or manufacturers, to share resources, reduce costs, and improve efficiency.
How is horizontal cooperation different from vertical cooperation?
Horizontal cooperation occurs between companies at the same supply chain level (e.g., two transport firms sharing routes).
Vertical cooperation occurs between different levels (e.g., manufacturer and retailer coordinating deliveries).
Example: Competing logistics firms consolidating shipments is horizontal cooperation, while a supplier managing retailer inventory is vertical cooperation.
What are the main drivers for horizontal cooperation in transport and logistics?
Cost reduction – Joint route planning, shared warehouses, and vehicle pooling lower costs.
Service improvement – Faster, more reliable deliveries through shared infrastructure.
Market access expansion – Entering new regions by partnering with local firms.
Environmental benefits – Reduced emissions from optimized transport routes.
What are common types of horizontal cooperation?
Joint route planning – Competitors combine shipments to reduce empty truck runs.
Manufacturers’ consolidation centers (MCCs) – Multiple suppliers share a warehouse for better distribution.
Purchasing groups – Companies buy fuel, equipment, or logistics services together for discounts.
What are key issues to horizontal cooperation?
Trust issues – Competitors may fear sharing sensitive data.
Complex negotiations – Fairly distributing costs and savings is difficult.
Coordination challenges – Aligning different company processes and IT systems.
Legal and competition law restrictions – Risk of forming anti-competitive cartels.
How can companies create successful horizontal cooperation?
Establish trust through transparent communication.
Use fair gain-sharing mechanisms based on contributions.
Implement IT systems for seamless data exchange.
Develop clear contracts outlining responsibilities and dispute resolution.
What is co-opetition, and how does it relate to horizontal cooperation?
Co-opetition is when companies cooperate in non-core activities (e.g., logistics) while still competing in core business areas (e.g., product pricing).
Example: Competing retailers might share warehouse space while still competing in product sales.
What technologies support horizontal cooperation in logistics?
Data-sharing.
Real-time tracking for joint fleet management.
AI-based route optimization to minimize fuel and delivery costs.
How does horizontal cooperation contribute to sustainability?
By consolidating shipments and sharing resources, companies reduce fuel consumption, emissions, and congestion, making logistics operations more eco-friendly.
