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Innovative Platform for horizontal collaboration in Road freight transportation

Periodic Reporting for period 1 - WeShare (Innovative Platform for horizontal collaboration in Road freight transportation)

Reporting period: 2018-08-01 to 2018-11-30

One of the main issues of European road transport sector is the average fill rate which is 25%- 50% empty. Shippers demand shorter lead times and 24/7 deliveries, resulting into even more empty truck
kilometers, an unnecessary high emission of CO2 and fine dust, and extra traffic congestion creating an adverse effect on the society.
Logistic Service Providers (LSPs) demand possibilities to optimize their efficiency and to lower their costs. The current IT systems do not sufficiently support collaboration. Companies are reluctant to share data as they regard each other as competitors and there is a lack of trust. This is one of the main constraints for the failure of other initiatives. The overall objective of the project is to commercialize a collaboration model supported by an adaptable transport management system digital platform that allows LSPs share its data to perform cross optimization of riding and loading operations among shippers, ensuring their optimal trucks’ use without compromising their data.
We have defined the technical and commercial development steps needed to reach the TRL9 which included defining work plan and budget together with a technical risk analysis. We also deepened our understanding of the market situation, growth and trends, alliances and collaboration as well as redefined the Service able Available Market and drilled down on the competitor situation. We further elaborated our model for the societal impact calculation depending on the number of LSPs involved. We carried out an FtO which had a positive outcome for Europe but warned us for potential threats overseas. We also analyzed the feasibility from the regulatory point of view. This all translated into an updated business plan and a commercialization strategy which confirmed our initial ideas of internationalization plan where we now have added a new dimension with potential clients for each country. We also did a deep financial modeling, where we distinguished the development and commercialization phase costs and investments and understood that our expected ROI is not as high as we would have hoped in the first place.
Due to a reduction in kms driven to deliver equal volume transported, CO2 and fine-dust emissions are reduced. LSPs will have a more sustainable and profitable operation in order to invest further in sustainable transportation. According to our model, the highest saving on cost will be achieved with less than 30 LSPs participating in the development project.