Already in the very early days of trading, people realized that the transport of goods from sender to receiver is only efficient if the loading capacity of the carrying resource is fully used. Collecting shipments from similar areas and or type of goods were first specializations. Still today, we see the same characteristics in the logistic industry. Resource exchange and rest places became depots or hubs. Today hub and spoke models are synchronizing the goods flow in a detailed manner.
Whether acting as forwarder and/or carrier, the goal is the ideal utilization of resources and bringing this in line with customer expectations (speed, quality, and price).
Challenge of the LTL / general cargo industry
The basic principle of a network is a service promise. In order to operate a general cargo network in an area, a certain business size mandatory.
Consequently, the carrier is forced to operate the network, not important whether the transport quantity is big or low. In order to have a base load, many transportation companies are willing or forced to accept such loads at a very low price, with the hope that other shipments will pay an extra premium.
The result of this is well known: operating a network is a very low margin business.
Optimized fleet utilization. Which truck and truck size shall we use for which tour, not knowing which shipments and we need to collect in the afternoon? How can we avoid the bad cases that a vehicle has to make a dedicated run in order to pick-up one remaining palette at a remote place?
The use of subcontractors and specialized partners helps to keep the costs under control, but is on the other side often heavily increasing the complexity and an additional money flow must be managed.
Logistic service providers are deeply integrated into the supply chain of their customers and their customers customers. Only a small disruption of the flow might have a big impact. Customers are hence expecting a high service quality.
CAPcargo customers of the LTL / general cargo industry
AHG Refrigerated Logistics (AHG RL) represents Australia’s only truly national temperature controlled supply chain network as a result of bringing together; Scott’s, Rand, Harris and JAT to form one single business.” AHG RL is the biggest service provider in Australia when it comes refrigerated transport and warehousing services. www.ahgrl.com.au
LGT group (former known as LBC Sweden) is a Holding company with subsidiaries in Sweden, Denmark and Finland. The main business is European-wide transport as well as the storage of furniture. Per day 26`000 of pieces of furniture are transported. lgtlogistics.com
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