IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v104y2017icp165-188.html
   My bibliography  Save this article

Stakeholder’s profitability of carrier-led consolidation strategies in urban goods distribution

Author

Listed:
  • Estrada, Miquel
  • Roca-Riu, Mireia

Abstract

This paper presents the necessary conditions to ensure a minimal profitability of carrier-led consolidation strategies in urban distribution. These conditions are shown by compact formulas obtained by continuous approximations representing the cost of the stakeholders involved: society, regular carriers, consolidation facility operator and environment. The domain of the retailer density variable that always produces negative effects on each stakeholder has been identified. The envelope of this domain does not depend on vehicle costs and other site-related parameters. On the other hand, there is a critical density of receivers that makes the carrier cost savings higher than the CF operator costs.

Suggested Citation

  • Estrada, Miquel & Roca-Riu, Mireia, 2017. "Stakeholder’s profitability of carrier-led consolidation strategies in urban goods distribution," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 104(C), pages 165-188.
    • Handle: RePEc:eee:transe:v:104:y:2017:i:c:p:165-188
    DOI: 10.1016/j.tre.2017.06.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554516309656
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2017.06.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. M A Krajewska & H Kopfer & G Laporte & S Ropke & G Zaccour, 2008. "Horizontal cooperation among freight carriers: request allocation and profit sharing," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(11), pages 1483-1491, November.
    2. Campbell, James F., 1990. "Freight consolidation and routing with transportation economies of scale," Transportation Research Part B: Methodological, Elsevier, vol. 24(5), pages 345-361, October.
    3. Jesus Gonzalez-Feliu & Joëlle Morana, 2010. "Collaborative transportation sharing: from theory to practice via a case study from France," Post-Print halshs-00460923, HAL.
    4. Daganzo, Carlos F., 1988. "Shipment composition enhancement at a consolidation center," Transportation Research Part B: Methodological, Elsevier, vol. 22(2), pages 103-124, April.
    5. Qureshi, A.G. & Taniguchi, E. & Yamada, T., 2009. "An exact solution approach for vehicle routing and scheduling problems with soft time windows," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(6), pages 960-977, November.
    6. Newell, G. F., 1986. "Design of multiple-vehicle delivery tours--III valuable goods," Transportation Research Part B: Methodological, Elsevier, vol. 20(5), pages 377-390, October.
    7. Daganzo, Carlos F., 1988. "A comparison of in-vehicle and out-of- vehicle freight consolidation strategies," Transportation Research Part B: Methodological, Elsevier, vol. 22(3), pages 173-180, June.
    8. Newell, Gordon F. & Daganzo, Carlos F., 1986. "Design of multiple-vehicle delivery tours--I a ring-radial network," Transportation Research Part B: Methodological, Elsevier, vol. 20(5), pages 345-363, October.
    9. Daganzo, Carlos F., 1984. "The length of tours in zones of different shapes," Transportation Research Part B: Methodological, Elsevier, vol. 18(2), pages 135-145, April.
    10. Newell, Gordon F. & Daganzo, Carlos F., 1986. "Design of multiple vehicle delivery tours--II other metrics," Transportation Research Part B: Methodological, Elsevier, vol. 20(5), pages 365-376, October.
    11. H. J. (Hans) Quak & M. (René) B. M. de Koster, 2009. "Delivering Goods in Urban Areas: How to Deal with Urban Policy Restrictions and the Environment," Transportation Science, INFORMS, vol. 43(2), pages 211-227, May.
    12. Zhou, Guanghui & Hui, Yer Van & Liang, Liang, 2011. "Strategic alliance in freight consolidation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(1), pages 18-29, January.
    13. Robuste, Francesc & Daganzo, Carlos F. & Souleyrette, Reginald R., 1990. "Implementing vehicle routing models," Transportation Research Part B: Methodological, Elsevier, vol. 24(4), pages 263-286, August.
    14. Milena Janjevic & Philip Kaminsky & Alassane Ballé Ndiaye, 2013. "Downscaling the consolidation of goods – state of the art and transferability of micro-consolidation initiatives," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 54, pages 1-4.
    15. Carlos F. Daganzo, 1984. "The Distance Traveled to Visit N Points with a Maximum of C Stops per Vehicle: An Analytic Model and an Application," Transportation Science, INFORMS, vol. 18(4), pages 331-350, November.
    16. Julian Allen & Michael Browne & Allan Woodburn & Jacques Leonardi, 2012. "The Role of Urban Consolidation Centres in Sustainable Freight Transport," Transport Reviews, Taylor & Francis Journals, vol. 32(4), pages 473-490, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Narayanan, Santhanakrishnan & Antoniou, Constantinos, 2022. "Electric cargo cycles - A comprehensive review," Transport Policy, Elsevier, vol. 116(C), pages 278-303.
    2. Lemardelé, Clément & Estrada, Miquel & Pagès, Laia & Bachofner, Mónika, 2021. "Potentialities of drones and ground autonomous delivery devices for last-mile logistics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    3. John Olsson & Daniel Hellström & Henrik Pålsson, 2019. "Framework of Last Mile Logistics Research: A Systematic Review of the Literature," Sustainability, MDPI, vol. 11(24), pages 1-25, December.
    4. Wanjie Hu & Jianjun Dong & Bon-gang Hwang & Rui Ren & Zhilong Chen, 2019. "A Scientometrics Review on City Logistics Literature: Research Trends, Advanced Theory and Practice," Sustainability, MDPI, vol. 11(10), pages 1-27, May.
    5. Amaya, Johanna & Delgado-Lindeman, Maira & Arellana, Julian & Allen, Jaime, 2021. "Urban freight logistics: What do citizens perceive?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    6. Isa, Selma Setsumi & Lima, Orlando Fontes & Vidal Vieira, José Geraldo, 2021. "Urban consolidation centers: Impact analysis by stakeholder," Research in Transportation Economics, Elsevier, vol. 90(C).
    7. Priscila Pereira Suzart Carvalho & Ricardo Araújo Kalid & Jorge Laureano Moya Rodríguez & Sandro Breval Santiago, 2019. "Interactions among stakeholders in the processes of city logistics: a systematic review of the literature," Scientometrics, Springer;Akadémiai Kiadó, vol. 120(2), pages 567-607, August.
    8. Jaller, Miguel & Pahwa, Anmol, 2020. "Analytical Modeling Framework to Assess the Economic and Environmental Impacts of Residential Deliveries, and Evaluate Sustainable Last-Mile Strategies," Institute of Transportation Studies, Working Paper Series qt4143j4pr, Institute of Transportation Studies, UC Davis.
    9. Pahwa, Anmol & Jaller, Miguel, 2022. "A cost-based comparative analysis of different last-mile strategies for e-commerce delivery," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    10. Khalid Aljohani & Russell G. Thompson, 2018. "A Stakeholder-Based Evaluation of the Most Suitable and Sustainable Delivery Fleet for Freight Consolidation Policies in the Inner-City Area," Sustainability, MDPI, vol. 11(1), pages 1-27, December.
    11. Cleophas, Catherine & Cottrill, Caitlin & Ehmke, Jan Fabian & Tierney, Kevin, 2019. "Collaborative urban transportation: Recent advances in theory and practice," European Journal of Operational Research, Elsevier, vol. 273(3), pages 801-816.
    12. Aljohani, Khalid & Thompson, Russell G., 2021. "Profitability of freight consolidation facilities: A detailed cost analysis based on theoretical modelling," Research in Transportation Economics, Elsevier, vol. 90(C).
    13. Jaller, Miguel & Pahwa, Anmol, 2023. "Coping with the Rise of E-commerce Generated Home Deliveries through Innovative Last-mile Technologies and Strategies," Institute of Transportation Studies, Working Paper Series qt5t76x0kh, Institute of Transportation Studies, UC Davis.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Langevin, André & Mbaraga, Pontien & Campbell, James F., 1996. "Continuous approximation models in freight distribution: An overview," Transportation Research Part B: Methodological, Elsevier, vol. 30(3), pages 163-188, June.
    2. Lei, Chao & Ouyang, Yanfeng, 2018. "Continuous approximation for demand balancing in solving large-scale one-commodity pickup and delivery problems," Transportation Research Part B: Methodological, Elsevier, vol. 109(C), pages 90-109.
    3. Ouyang, Yanfeng, 2007. "Design of vehicle routing zones for large-scale distribution systems," Transportation Research Part B: Methodological, Elsevier, vol. 41(10), pages 1079-1093, December.
    4. Carlos F. Daganzo & Karen R. Smilowitz, 2004. "Bounds and Approximations for the Transportation Problem of Linear Programming and Other Scalable Network Problems," Transportation Science, INFORMS, vol. 38(3), pages 343-356, August.
    5. Bergmann, Felix M. & Wagner, Stephan M. & Winkenbach, Matthias, 2020. "Integrating first-mile pickup and last-mile delivery on shared vehicle routes for efficient urban e-commerce distribution," Transportation Research Part B: Methodological, Elsevier, vol. 131(C), pages 26-62.
    6. Anna Franceschetti & Ola Jabali & Gilbert Laporte, 2017. "Continuous approximation models in freight distribution management," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 25(3), pages 413-433, October.
    7. Sungwon Lee & Taesung Hwang, 2018. "Estimating Emissions from Regional Freight Delivery under Different Urban Development Scenarios," Sustainability, MDPI, vol. 10(4), pages 1-14, April.
    8. Merchán, Daniel & Winkenbach, Matthias & Snoeck, André, 2020. "Quantifying the impact of urban road networks on the efficiency of local trips," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 38-62.
    9. Lei, Chao & Zhang, Qian & Ouyang, Yanfeng, 2017. "Planning of parking enforcement patrol considering drivers’ parking payment behavior," Transportation Research Part B: Methodological, Elsevier, vol. 106(C), pages 375-392.
    10. Banerjee, Dipayan & Erera, Alan L. & Stroh, Alexander M. & Toriello, Alejandro, 2023. "Who has access to e-commerce and when? Time-varying service regions in same-day delivery," Transportation Research Part B: Methodological, Elsevier, vol. 170(C), pages 148-168.
    11. Carlos Daganzo & Karen Smilowitz, 2006. "A note on asymptotic formulae for one-dimensional network flow problems," Annals of Operations Research, Springer, vol. 144(1), pages 153-160, April.
    12. Koç, Çağrı & Bektaş, Tolga & Jabali, Ola & Laporte, Gilbert, 2016. "Thirty years of heterogeneous vehicle routing," European Journal of Operational Research, Elsevier, vol. 249(1), pages 1-21.
    13. Campbell, James F., 1995. "Using small trucks to circumvent large truck restrictions: Impacts on truck emissions and performance measures," Transportation Research Part A: Policy and Practice, Elsevier, vol. 29(6), pages 445-458, November.
    14. Jabali, Ola & Gendreau, Michel & Laporte, Gilbert, 2012. "A continuous approximation model for the fleet composition problem," Transportation Research Part B: Methodological, Elsevier, vol. 46(10), pages 1591-1606.
    15. Franceschetti, Anna & Honhon, Dorothée & Laporte, Gilbert & Woensel, Tom Van & Fransoo, Jan C., 2017. "Strategic fleet planning for city logistics," Transportation Research Part B: Methodological, Elsevier, vol. 95(C), pages 19-40.
    16. Novaes, Antonio G. N. & Graciolli, Odacir D., 1999. "Designing multi-vehicle delivery tours in a grid-cell format," European Journal of Operational Research, Elsevier, vol. 119(3), pages 613-634, December.
    17. Daganzo, Carlos F. & Smilowitz, Karen R., 2000. "Asymptotic Approximations for the Transportation LP and Other Scalable Network Problems," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt3dn2j66w, Institute of Transportation Studies, UC Berkeley.
    18. Bertazzi, Luca & Speranza, Maria Grazia & Ukovich, Walter, 1997. "Minimization of logistic costs with given frequencies," Transportation Research Part B: Methodological, Elsevier, vol. 31(4), pages 327-340, August.
    19. Daganzo, Carlos F & Smilowitz, Karen R, 2000. "Asymptotic Approximations for the Transportation LP and Other Scalable Network Problems," University of California Transportation Center, Working Papers qt7wb1g4z7, University of California Transportation Center.
    20. Diana, Marco & Dessouky, Maged M. & Xia, Nan, 2006. "A model for the fleet sizing of demand responsive transportation services with time windows," Transportation Research Part B: Methodological, Elsevier, vol. 40(8), pages 651-666, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:104:y:2017:i:c:p:165-188. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.