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The Software Model
The timber business in Scotland is comprised of a number of
disparate trading entities
This can often lead to an ineffective use of the haulage resource, leading to cost inefficiencies and a marginalised transport sector.
working at site level and generally in isolation to each
other. The project aims to consolidate the logistics of supply and demand
and manage
the haulage resource centrally.
Thus eliminating inefficiency by reducing the unloaded miles contingent.
The allocation of weekly journey plans to individual trucks will
provide detailed planning
The selection of routes and trucks will be made objectively by an optimising engine within the software programme, driven by algorithms using defined industry parameters.
The communications will employ e-business systems via web reporting and digital data transfers.
The Agreed Routes protocols of the Timber Transport Groups will be incorporated into the base vector map used by the optimiser.
for haulage companies to enable them to dovetail the LIFT business into their other haulage business. The purpose of the model and the subsequent trial is to
measure improvements in efficiency
Against independently measured benchmarks, both economic and social.
The aim is to persuade the industry that collaborative trading can derive benefits for all users and stakeholders leading to a commercial roll out of the LIFT optimising and scheduling service provision.
The Trading Model
This is distinct from the software model as it deals solely with the way financial transactions are carried out. The collaborative nature of LIFT leaves it exposed to
challenges under anti-competition law
LIFT will not be a competitor
in the timber haulage 'market' it will merely act as an agent for both
the customer and the haulier.
Ownership of the contract to move timber will remain with the customer and haulier.
It is also important that LIFT does not set prices and that membership of LIFT is open to any proficient and qualified haulage contractor.
Internal competition must be encouraged.
so the trading model needs to address these issues. The pilot project will address these issues throughout the
development phase
The trading model will be considered equally important as the cultural
changes the software model will necessitate.
in readiness for the industry wide trial phase.
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