Alliance network improvement

The main objective of LinerGrid’s collaborative tool is to accomplish two things. One is to improve the efficiency of the joint alliance network, without using data which goes against regulatory compliance. The other is to increase the speed and efficiency with which the alliance partners can discuss and agree on network changes.

The proposed alliance network, or multiple network scenarios, is mapped in the tool. Secondly, key parameters of the network are entered using standard values provided by LinerGrid for relevant cost items such as vessel costs, port costs etc. It is important that these values are standard/generic values and not specific from each individual carrier in order to ensure regulatory compliance.

With this baseline, it is possible to calculate key performance indicators for the alliance network as a whole. These are indicators such as total network cost, tradelane/string cost, estimated full roundtrip network utilization etc. Again, nothing broken into individual carrier level, and no individual confidential carrier data being utilized in order to maintain regulatory compliance.

This provides a factual baseline common to all alliance members allowing a clear evaluation of whether proposed network changes are of an overall benefit to the joint network. It also allows a clear analysis of the holistic efficiency of the total network, and therefore allows a constructive dialogue amongst the members focused on improving the efficiency of the overall network.

Once such a common framework for evaluation is in place, discussions pertaining to network changes can be concluded much more swiftly, as the quantitative effects upon the whole network become much more transparent – in turn making the alliance more agile in dealing with market changes.

The collaborative tool and the process framework supporting it can be put in place quickly and does not require any of the participating carriers to implement a new IT system