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An Algorithm for Consolidating Small Shipments to Reduce Costs in International Logistics for E-commerce Businesses

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  • Igor Tovstolis

Abstract

Purpose: This article presents an algorithm designed to optimize the consolidation of small shipments, aiming to reduce costs and improve efficiency in international logistics for e-commerce businesses. The research focuses on the highly trafficked route between China and the USA, particularly the corridor from Shenzhen to Los Angeles. Methodology: By employing a cluster-based optimization model, the algorithm consolidates goods from multiple e-commerce companies into single containers, maximizing space utilization and minimizing transportation costs. Findings: Experimental data reveals a 40% reduction in costs and a 10-day decrease in delivery times compared to traditional methods. Unique Contribution to Theory, Practice and Policy: The algorithm has the potential as a scalable solution for global supply chain logistics.

Suggested Citation

  • Igor Tovstolis, 2024. "An Algorithm for Consolidating Small Shipments to Reduce Costs in International Logistics for E-commerce Businesses," International Journal of Supply Chain and Logistics, CARI Journals Limited, vol. 8(3), pages 1-15.
    • Handle: RePEc:bhx:oijscl:v:8:y:2024:i:3:p:1-15:id:2336
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    File URL: https://www.carijournals.org/journals/index.php/IJSCL/article/view/2336/2751
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