Collaboration and Transparency to Seamless Drayage Solutions

Drayage typically refers to the last-mile sector of container transportation, which is usually carried out by a truck. However, rail and shipping options can also fit this description. It is an essential part of the supply chain ecosystem in ensuring the efficient and effective transport of shipping containers to and from the multitude of locations they need to be at.

Drayage can often be fragmented, with multiple service providers offering this service competing with each other in a low-margin environment. Many of these providers will be working in complementary situations, whereby some are focused on inbound cargo and others on outbound, potentially leaving unladen trips and adding unnecessary costs. Even though drayage trips tend to be shorter and point-to-point, they generally occur in urban areas, where elements such as traffic congestion can also impact cost and timing.

Planning is crucial in ensuring these trips are optimised for the best use of assets and resources. 

Expanding the planning function to incorporate more trips by more suppliers could allow for a better understanding of the overall demand. This would only be possible if service providers collaborated or if there was transparency of the overall daily demand for drayage trip requirements, which could be accessed. 

In a perfect world, a collaborative, transparent approach can allow all service providers to share information and jointly invest in creating a platform whereby demand is visible to all members. No commercially sensitive information needs to be shared, just the required trips. Service providers can then openly discuss synergies and deploy assets and resources only where they need to or designate a service provider that could act on behalf of others through a shared commercial arrangement. This would allow providers to deploy assets elsewhere or divest.

A model like this can improve sustainability and resilience in the supply chain. Value will be created, but it must be shared with all stakeholders to maintain commercial sustainability. This can only be done by agreeing on the level of transparency needed to make the model successful. 

"In a perfect world, a collaborative, transparent approach can allow all service providers to share information and jointly invest in creating a platform whereby demand is visible to all members"

Collaboration is key! Service providers must focus on the bigger picture and set aside differences to ensure success. With many examples around the world, it is possible that technology has been used to create platforms accessible not only to service providers but also to cargo owners. These models work well and tend to allow for scalability by adding data and suppliers from other parts of the supply chain, i.e., long haul road and sea freight, air freight, rail, etc. After all, we are all part of the same ecosystem; we just need to connect the dots!