Question

In Logistical and Sustainability Challenges in the Sharing Economy: how does the SE affect the logistics industry? How does it challenge it? How do traditional and crowd logistics influence each other? Do consumers play an autonomous logistics role? The financial and operational viability of such new logistics models and firms could be examined.

And Also

The Sharing Economy and its Implications for Sustainable Value Chains: How can sharing economy improve allocation and usage efficiency along the value chain? How can the sharing economy help to cope with the growing environmental problems of consumption? How will the sharing economy create new visions for resources conservation and recycling activities?

Answer 1

Economic sharing is an economy based on the exchange of human, physical and intellectual resources. This is most much allowed by technology as it connects various individuals and organizations in the production, distribution, and use of products and services. In fact, trading is not only based on currency exchange – but there are also other ways of commodity exchange, such as swapping, exchanging, investment, open access, mutual sharing, investing, leasing, and so many more.

An example of which most of you would be acquainted is Uber which has recently launched Uber Freight and is being carried out in the United States. It provides drivers with very attractive 7-day payment terms and allows them to carry a full charge all the time using the app. Thus multiple customers share the use of the lorry space. It is a simple idea powered by technology that brings together multiple buyers on a scale with one seller. This increases freight capacity, as automobiles are less probable to be partially empty. This is better for drivers, and the atmosphere, because less gasoline can be consumed potentially. It is also extremely beneficial for consumers who should see a reduction in their freight costs. A basic example illustrates that the shared economy is rendering logistics more secure, less environmentally impactful and more cost-effective.

Traditional logistics is more about having a dedicated delivery method assigned to have the item delivered to you. On the other hand, crowd logistics is about using the shared resources that are already available to deliver the parcel. For example, by using crowdsourced distribution, you can let one of your neighbors drive your order home, at a low rate. So, having a rhythm between can make more efficient delivery at a low price compared to a dedicated delivery system as well as better arrival times.

If a supply chain can be made using the consumers as a mode of transport to deliver goods from one place to another, then the consumer can play an autonomous role in logistics.

There are many studies regarding the sharing economy and crowdsourced transportation, but corporate hasn't yet tried this model so, no comments can be made on the same. But if some corporate tries the same, they can check the viability of crowdsourced transportation.

Since most of the vehicles that is moving on the road are underutilized so, I believe the sharing economy will improve allocation and efficiency as well. Having only one SUV for a person is surely underutilization of the capacity that the vehicle have. So, by allowing some cargo to take along will not only ensure proper utilization of the capacity but also earning potential for the person as well.

Now let us consider a situation where there are traffic jams because of the underutilization of echoes. So, by utilizing properly the vehicle with 100% capacity, we will ensure the savings of fuel as well as other pollution. It works the same way public transportation works where everyone uses the same vehicles for getting to their destination at a much cheaper rrate.