13. Horizontal Logistics Collaboration—An International Retail Supply Chain Case Study

The practice of horizontal logistics is an established mode of operation in some transport modes such as shipping and air-freight, but thus far a neglected area with great potential with respect to land transport. Crucially, horizontal logistics requires collaboration potentially with competitors but also potentially with those acting in entirely different supply chain settings. With a focus on the Fast-Moving Consumer Goods sector, this chapter illustrates the establishment of a new horizontal logistics initiative with regards to four key phases: Outset consideration factors, ideal synergies, assisting enablers and output metrics. For horizontal collaboration to work, many factors need to be considered as present: A robust legal framework, common suppliers, capable and neutral logistics service providers, supportive operating model, fair sharing of benefits and supportive attitude of supply chain champions, and the ability to demonstrate a strong business case. The research discussed in this chapter shows that there is a crucial role for a neutral third-party company in a horizontal logistics initiative precisely because of the collaborative nature of such an initiative.