Publication
Title
Horizontal logistics collaboration : decreasing costs through flexibility and an adequate cost allocation strategy
Author
Abstract
When entering a horizontal logistics alliance, companies can expect a significant cost decrease. In this paper, we show that when the partners in an alliance adopt a flexible attitude (i.e. allow changes to the terms of their deliveries), the total cost can be further decreased. We argue that the method used to allocate the total cost to the different partners should therefore encourage such flexibility. A case study of three companies in Belgium achieves a 25.83% decrease in transportation costs. Allocating this collaborative gain with the Shapley value, the individual gains range from 19.01% to 37.56%. By allowing changes to delivery dates and allowing large orders to be split into several deliveries, the partners in the alliance can increase the collaborative gain and their individual gains. The Shapley value is found to encourage flexibility.
Language
English
Source (journal)
International journal of logistics : research & applications. - Abingdon
Publication
Abingdon : 2014
ISSN
1367-5567
Volume/pages
17:4(2014), p. 339-355
ISI
000337964800005
Full text (Publishers DOI)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 28.08.2014
Last edited 26.04.2017
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