New business model for freight logistics: the M1M case study

Transportation and Logistics industry in recent years has undergone a significant expansion, becoming a key component in the economy of all countries, since through a continuous optimization of logistics processes it supports decisions on a tactical, strategic and operational level, influencing thus the final cost of the product. This growth was supported by digitalization which, through the introduction of many technological innovations, makes the market very competitive meeting the high quality standards required by customers. In particular, the advances made by the Internet of Things (IoT) technologies allow accurate collection of data related to loads and vehicles, and this allows for more efficient planning of logistics activities. Therefore, the logistics sector faces various challenges in order to meet customer’s needs, which require higher quality of service, shorter delivery times and greater flexibility. Economic and operational sustainability are certainly two important aspects, to which are added the challenges related to environmental sustainability, since the regulations in force are aimed at reducing carbon emissions. Finally, supply chain management is increasingly demand-driven, particularly due to the influence of the global pandemic. Hence, logistics service providers must be able to adapt to changes in demand, using real time data. Over the past years, many studies have focused on the operational and technical aspects to address these challenges, neglecting the dynamic business perspective, and thus causing the failure of many projects. Only a European project on synchromodality, SYNCHRO-NET, has shown how the combination of operational aspects and business models represents a solution much closer to the market. Therefore, on the basis of the results obtained by SYNCHRO-NET, this paper aims to fill this gap, in particular regarding the case of the M1M system. Among the many benefits, this system allows for more efficient planning of operations and reduces carbon emissions by alleviating traffic congestion and avoiding unnecessary waste of time and money. However, it is a very complex system, characterized by multiple actors with conflicting objectives. So such a stakeholder-driven approach can give end users a real competitive advantage. In fact, particular emphasis is placed on understanding what customers value and on providing users with support on how to design and deliver value to their customers. Therefore, an efficient supply chain management relies on integrating multiple perspectives from key stakeholders. Thus, the purpose of this thesis is the development of a Solution Canvas for the M1M system, to face the challenges mentioned above, and to bring a competitive advantage on the market. The solution was developed following the GUEST methodology, and then it was applied to a real case. The results obtained demonstrate a reduction in costs, times and emissions, and also greater reliability and sustainability through the optimization of the planning process. In conclusion, this study confirms how the integration of a strategic approach, to the technical and operational one, can help the company to stand out in the market by creating value.