IDEA: Could £2billion be saved?
Collaboration in the supply chain could save a staggering £2billion every year on fuel alone, it has been claimed.
A panel discussion, organised by Bibby Supply Chain Services at the International Festival of Business, Liverpool, concluded that collaboration could also reap benefits in training, driver standards and supporting end customers.
Paul Byrne, Head of Strategy at Bibby Supply Chain Services, said that the difference between best and average drivers was worth £3,000 in fuel efficiency alone.
He added that if those drivers were up-skilled to be more effective, the total fuel savings would equate to four times the operating profit of the entire road transport industry.
However, he claimed that delivering that improvement would be beyond the capabilities of any one business, so third-party logistics providers must collaborate to reap the benefits.
Fellow panellists included Kate Willard, Corporate Affairs Director at Stobart Group, Jonathan Ballard, Director of Parts Supply Chain Group at Toyota Motor Europe, Professor Murray Dalziel, Director of the University of Liverpool Management School, Darcy Willson-Rymer, CEO of Costcutter, and Chris Etherington, Chairman and Chief Executive of Palmer and Harvey.
Iain Speak, CEO of Bibby Supply Chain Services, said: “As one of the industry leaders in collaborative practices, this high-profile event at one of the most important business gatherings in the world has given us a vital opportunity to drive real change in the supply chain.
“Where there is common good, we must work together.
“We have a critical opportunity that we must seize to cut costs, boost efficiency, raise standards and help our customers grow.”