Logistic broker solution

Project information

Index: 0018R1
Acronym:CASTLE
Priority:1: Innovation and the knowledge economy
Sub Theme:Entrepreneurship and SMEs
Location ITALY NORD-EST Modena Emilia-Romagna Start/End date of the practice
Start: 2008-09-01

Topic of the practice

The core benefit provided by the initiative is the optimisation of transport by developing a logistic broker solution on the base of destinations/quantity/timing of shipping, which leads to cost savings for user SMEs and less kilometres run by vehicles (with decreasing transport emissions).

Good Practice Information

The core benefit provided by the initiative is the optimisation of transport by developing a logistic broker solution on the base of destinations/quantity/timing of shipping, which leads to cost savings for user SMEs and less kilometres run by vehicles (with decreasing transport emissions).
The Logistic Broker initiative provides advantages for engaged companies and promotes at the same time transparent competitiveness among logistics operators.
The three main focuses are: Average cost savings; Rationalisation of transports; Less kilometres run by vehicles (it implies low emissions and less congestion of the routes).
The Broker is day-to-day in contact with the manufacturing SMEs (receive orders, plan and prepare missions, etc...).
Representatives of the public and private sectors were involved. The initiative was promoted by the Emilia-Romagna Region (the Regional Government, through the Ministry of Mobility and Transports), the Institute for Transport and Logistics Foundation (ITL, as technical partner) and the C.A.P (Consorzio Attività Produttive, Productive Area Consortium, managing the industrial area) of the province of Modena. These stakeholders set up and promoted the initiative together with the founding SMEs.
The initiative budget was about 200.000,00 euro and the financing was part public and part private.
On one hand, the collaborative solution led to significant cost savings for the involved SMEs (unreachable by using a non collaborative solution); on the other hand, the involved Public Administrations understood the main logistics needs of the participating SMEs. In addition, the solution is fully replicable to at the whole regional and transnational levels.

Evidence of success

The Broker represents a simple way for manufacturing companies to obtain costs’ savings and permits them to move employees into the real core business. Together with lower traffic, significant reduction of traffic’s negative effects on the environment will emerge.
The Logistic Broker initiative provided advantages for engaged companies and promotes at the same time transparent competitiveness among logistics operators. The analyses has shown the following effects: average cost savings of 20%, fewer kilometres (nearly 30%) run by vehicles and reduced number of transport routes by 37%.

Contact details to obtain further information on the practice

Mr Stefano Dondi

Institute for Transport and Logistics Foundation

sdondi@regione.emilia-romagna.it

www.kassetts.eu

Annex completed on: 04-27-2011

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