Procurement solutions
Forward planning of procurement needs by customers can improve delivery efficiency by allowing consolidation of freight transport tasks.
Procurement examples:
- instead of a business placing a weekly order for stationary, a bulk buy every two months can reduce the transport required if on site storage is available
- buy-local schemes can help to reduce the demand for freight transport throughout the entire supply chain
Freight consolidation and procurement
Alternatively, if there are problems with storage, freight consolidation across multiple businesses can more efficiently provide the same delivery volumes to individual companies with fewer deliveries.
Freight consolidation example:
- if a CBD office building has 40 businesses, it may not make economic sense for each to procure office paper from a different company, requiring 40 separate deliveries to the same building
- financial savings
- reduction in freight traffic in completing the transport task
Consolidated procurement solutions such as this need effort to coordinate, but can lead to significant savings even where there may be a cost to coordinate the ordering and delivery activities. It can also reduce freight traffic in completing the transport task.
The Department of Transport would consider a pilot project of consolidated freight ordering and delivery, if a large building or activity centre is interested in participating. Please email us an expression of interest or contact us on 03 9655 6330.
Link
- Freight Partnerships Model in the UK - Freight quality partnerships aim to address local freight distribution problems. Local businesses and authorities, the freight industry, environmental groups are represented.