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Strategic alliance in freight consolidation

Author

Listed:
  • Zhou, Guanghui
  • Hui, Yer Van
  • Liang, Liang

Abstract

The utilization of unfilled space in dispatching trucks requires collaboration among aligned partners. We consider two collaboration modes: strategic alliance and full collaboration, where outbound shipments could be reassigned among the partnering agents in freight consolidation with shipment delivery deadline. The effects of partnership are studied in an economic model where the product substitutability in price setting and discount offer are introduced. We adopt a simulation approach to find the optimal shipment dispatching plan in collaborative freight consolidation. A comprehensive analysis is presented to identify those factors which affect profit performance and collaboration decisions.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:transe:v:47:y:2011:i:1:p:18-29
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    Citations

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    Cited by:

    1. Wooseok Do & Hyeongjun Park & Koohong Chung & Dongjoo Park, 2019. "An Effects Analysis of Logistics Collaboration: The Case of Pharmaceutical Supplies in Seoul," Sustainability, MDPI, vol. 11(8), pages 1-16, April.
    2. Chabot, Thomas & Bouchard, Florence & Legault-Michaud, Ariane & Renaud, Jacques & Coelho, Leandro C., 2018. "Service level, cost and environmental optimization of collaborative transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 110(C), pages 1-14.
    3. 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.
    4. Baṣak Altan & Okan Örsan Özener, 2021. "A Game Theoretical Approach for Improving the Operational Efficiencies of Less-than-truckload Carriers Through Load Exchanges," Networks and Spatial Economics, Springer, vol. 21(3), pages 547-579, September.
    5. Romero-Silva, Rodrigo & Mujica Mota, Miguel, 2022. "Trade-offs in the landside operations of air cargo hubs: Horizontal cooperation and shipment consolidation policies considering capacitated nodes," Journal of Air Transport Management, Elsevier, vol. 103(C).
    6. Yilmaz, Ozhan & Savasaneril, Secil, 2012. "Collaboration among small shippers in a transportation market," European Journal of Operational Research, Elsevier, vol. 218(2), pages 408-415.
    7. Itoh, Ryo & Zhang, Anming, 2023. "Shipping alliances under an unexpected shock: Effects on market volatility and social welfare," Transportation Research Part A: Policy and Practice, Elsevier, vol. 178(C).
    8. Taiwo Adetiloye, 2021. "Collaboration Planning of Stakeholders for Sustainable City Logistics Operations," Papers 2107.14049, arXiv.org.
    9. Gang Du & Chuanwang Sun & Jinxian Weng, 2016. "Liner Shipping Fleet Deployment with Sustainable Collaborative Transportation," Sustainability, MDPI, vol. 8(2), pages 1-15, February.
    10. Jun Li & Xiaoqiang Cai & Yinlian Zeng, 2016. "Cost allocation for less-than-truckload collaboration among perishable product retailers," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 38(1), pages 81-117, January.
    11. Hezarkhani, Behzad & Slikker, Marco & Van Woensel, Tom, 2019. "Gain-sharing in urban consolidation centers," European Journal of Operational Research, Elsevier, vol. 279(2), pages 380-392.
    12. Jianfeng Zheng & Ziyou Gao & Dong Yang & Zhuo Sun, 2015. "Network Design and Capacity Exchange for Liner Alliances with Fixed and Variable Container Demands," Transportation Science, INFORMS, vol. 49(4), pages 886-899, November.
    13. Yao-Jen Hsiao & Heng-Chih Chou & Chun-Chou Wu, 2014. "Return lead-lag and volatility transmission in shipping freight markets," Maritime Policy & Management, Taylor & Francis Journals, vol. 41(7), pages 697-714, December.
    14. Ryan Lee & Moayad Shammut & Julian Allen & Xing Gao & Tianren Yang & Mengqiu Cao, 2021. "Investigating the Implications of the London Heathrow Airport Expansion for the Landside Freight Industry," Logistics, MDPI, vol. 5(3), pages 1-18, July.

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