IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i16p6627-d399776.html
   My bibliography  Save this article

Towards Sustainable Collaborative Logistics Using Specialist Planning Algorithms and a Gain-Sharing Business Model: A UK Case Study

Author

Listed:
  • Alix Vargas

    (Connected Places Catapult (CPC), Milton Keynes MK9 1BP, UK)

  • Carmen Fuster

    (Connected Places Catapult (CPC), Milton Keynes MK9 1BP, UK)

  • David Corne

    (School of Mathematical & Computer Sciences, Heriot-Watt University, Edinburgh EH14 4AS, UK)

Abstract

This paper introduces the FreightShare Lab Platform (FSLP) and its embedded business model, aiming to facilitate and encourage horizontal collaboration in freight logistics. The idea of the FSLP is to create collaborating clusters of freight operators, and corresponding collaborative operational plans, via specialised decision support algorithms and multi-fleet optimisation. Further, a gain-sharing business model embedded within the FSLP algorithms ensures that participants, mainly logistics service providers and freight operators, can retain their own profit margins and fairly share the efficiency gains from collaboration. A case study is presented, centred on a large UK freight operator, to evaluate the key FSLP algorithms in a realistic context. The results evidence the potential for significant financial and environmental benefits for industry and society.

Suggested Citation

  • Alix Vargas & Carmen Fuster & David Corne, 2020. "Towards Sustainable Collaborative Logistics Using Specialist Planning Algorithms and a Gain-Sharing Business Model: A UK Case Study," Sustainability, MDPI, vol. 12(16), pages 1-29, August.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:16:p:6627-:d:399776
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/16/6627/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/16/6627/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Liao, Shu-Hsien & Kuo, Fang-I, 2014. "The study of relationships between the collaboration for supply chain, supply chain capabilities and firm performance: A case of the Taiwan׳s TFT-LCD industry," International Journal of Production Economics, Elsevier, vol. 156(C), pages 295-304.
    2. Kale, Rahul & Evers, Philip T. & Dresner, Martin E., 2007. "Analyzing private communities on Internet-based collaborative transportation networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(1), pages 21-38, January.
    3. De, Arijit & Mogale, D.G. & Zhang, Mengdi & Pratap, Saurabh & Kumar, Sri Krishna & Huang, George Q., 2020. "Multi-period multi-echelon inventory transportation problem considering stakeholders behavioural tendencies," International Journal of Production Economics, Elsevier, vol. 225(C).
    4. Christodoulos Floudas & Xiaoxia Lin, 2005. "Mixed Integer Linear Programming in Process Scheduling: Modeling, Algorithms, and Applications," Annals of Operations Research, Springer, vol. 139(1), pages 131-162, October.
    5. Ankersmit, Steven & Rezaei, Jafar & Tavasszy, Lori, 2014. "The potential of horizontal collaboration in airport ground freight services," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 169-181.
    6. Gregor Dudek, 2009. "Supply Chain Management and Collaborative Planning," Springer Books, in: Collaborative Planning in Supply Chains, chapter 2, pages 5-24, Springer.
    7. Shenle Pan & Damien Trentesaux & Eric Ballot & George Q. Huang, 2019. "Horizontal collaborative transport: survey of solutions and practical implementation issues," International Journal of Production Research, Taylor & Francis Journals, vol. 57(15-16), pages 5340-5361, August.
    8. Pan, Shenle & Ballot, Eric & Fontane, Frédéric, 2013. "The reduction of greenhouse gas emissions from freight transport by pooling supply chains," International Journal of Production Economics, Elsevier, vol. 143(1), pages 86-94.
    9. Jesus Gonzalez-Feliu & Joelle Morana & Josep-Maria Salanova Grau & Tai-Yu Ma, 2013. "Design And Scenario Assessment For Collaborative Logistics And Freight Transport Systems," Articles, International Journal of Transport Economics, vol. 40(2).
    10. Shenle Pan & Eric Ballot & Frédéric Fontane, 2013. "The reduction of greenhouse gas emissions from freight transport by pooling supply chains," Post-Print hal-00733678, HAL.
    11. Jesus Gonzalez-Feliu & Joëlle Morana, 2010. "Collaborative transportation sharing: from theory to practice via a case study from France," Post-Print halshs-00460923, HAL.
    12. Gansterer, Margaretha & Hartl, Richard F., 2018. "Collaborative vehicle routing: A survey," European Journal of Operational Research, Elsevier, vol. 268(1), pages 1-12.
    13. Shenle Pan & Damien Trentesaux & Eric Ballot & George Q. Huang, 2019. "Horizontal collaborative transport: survey of solutions and practical implementation issues," Post-Print hal-02008934, HAL.
    14. Mohit Goswami & Arijit De & Muhammad Khoirul Khakim Habibi & Yash Daultani, 2020. "Examining freight performance of third-party logistics providers within the automotive industry in India: an environmental sustainability perspective," International Journal of Production Research, Taylor & Francis Journals, vol. 58(24), pages 7565-7592, December.
    15. Okdinawati, Liane & Simatupang, Togar M & Sunitiyoso, Yos, 2015. "Modelling Collaborative Transportation Management: Current State And Opportunities For Future Research," Journal of Operations and Supply Chain Management (JOSCM), Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo (FGV EAESP), vol. 8(2), December.
    16. Laporte, Gilbert, 1992. "The vehicle routing problem: An overview of exact and approximate algorithms," European Journal of Operational Research, Elsevier, vol. 59(3), pages 345-358, June.
    17. Marius M. Solomon, 1987. "Algorithms for the Vehicle Routing and Scheduling Problems with Time Window Constraints," Operations Research, INFORMS, vol. 35(2), pages 254-265, 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. Hatzenbühler, Jonas & Jenelius, Erik & Gidófalvi, Gyözö & Cats, Oded, 2023. "Modular vehicle routing for combined passenger and freight transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 173(C).
    2. Vitor Anes & António Abreu & Ana Dias & João Calado, 2022. "A Reputational-Risk-Based Match Selection Framework for Collaborative Networks in the Logistics Sector," Sustainability, MDPI, vol. 14(7), pages 1-24, April.

    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. De Moor, Bram J. & Creemers, Stefan & Boute, Robert N., 2023. "Breaking truck dominance in supply chains: Proactive freight consolidation and modal split transport," International Journal of Production Economics, Elsevier, vol. 257(C).
    2. Thomas Hacardiaux & Christof Defryn & Jean-Sébastien Tancrez & Lotte Verdonck, 2022. "Balancing partner preferences for logistics costs and carbon footprint in a horizontal cooperation," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(1), pages 121-153, March.
    3. Alix Vargas & Shushma Patel & Dilip Patel, 2018. "Towards a Business Model Framework to Increase Collaboration in the Freight Industry," Logistics, MDPI, vol. 2(4), pages 1-32, October.
    4. Hacardiaux, Thomas & Defryn, Christof & Tancrez, Jean-Sébastien & Verdonck, Lotte, 2020. "Balancing partner preferences for logistics costs and carbon footprint in a horizontal cooperation," Research Memorandum 002, Maastricht University, Graduate School of Business and Economics (GSBE).
    5. Mrabti, Nassim & Hamani, Nadia & Boulaksil, Youssef & Amine Gargouri, Mohamed & Delahoche, Laurent, 2022. "A multi-objective optimization model for the problems of sustainable collaborative hub location and cost sharing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    6. Nassim Mrabti & Nadia Hamani & Laurent Delahoche, 2022. "A Comprehensive Literature Review on Sustainable Horizontal Collaboration," Sustainability, MDPI, vol. 14(18), pages 1-38, September.
    7. Soriano, Adria & Gansterer, Margaretha & Hartl, Richard F., 2023. "The multi-depot vehicle routing problem with profit fairness," International Journal of Production Economics, Elsevier, vol. 255(C).
    8. Amiri, Mosleh & Farvaresh, Hamid, 2023. "Carrier collaboration with the simultaneous presence of transferable and non-transferable utilities," European Journal of Operational Research, Elsevier, vol. 304(2), pages 596-617.
    9. Zhang, Qihuan & Wang, Ziteng & Huang, Min & Yu, Yang & Fang, Shu-Cherng, 2022. "Heterogeneous multi-depot collaborative vehicle routing problem," Transportation Research Part B: Methodological, Elsevier, vol. 160(C), pages 1-20.
    10. Margaretha Gansterer & Richard F. Hartl, 2020. "Shared resources in collaborative vehicle routing," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 28(1), pages 1-20, April.
    11. Soriano, Adria & Gansterer, Margaretha & Hartl, Richard F., 2022. "Reprint of: The multi-depot vehicle routing problem with profit fairness," International Journal of Production Economics, Elsevier, vol. 250(C).
    12. Alikhani, Reza & Eskandarpour, Majid & Jahani, Hamed, 2023. "Collaborative distribution network design with surging demand and facility disruptions," International Journal of Production Economics, Elsevier, vol. 262(C).
    13. Justiani Sally & Wibowo Budhi S., 2022. "The Economic and Environmental Benefits of Collaborative Pick-Up in Urban Delivery Systems," LOGI – Scientific Journal on Transport and Logistics, Sciendo, vol. 13(1), pages 245-256, January.
    14. Gansterer, Margaretha & Födermayr, Patrick & Hartl, Richard F., 2021. "The capacitated multi-level lot-sizing problem with distributed agents," International Journal of Production Economics, Elsevier, vol. 235(C).
    15. Thibault Delbart & Yves Molenbruch & Kris Braekers & An Caris, 2021. "Uncertainty in Intermodal and Synchromodal Transport: Review and Future Research Directions," Sustainability, MDPI, vol. 13(7), pages 1-25, April.
    16. Cruijssen, Frans, 2020. "Cross-Chain Collaboration in Logistics: Looking Back and Ahead," Other publications TiSEM f92f9dbe-0893-4f82-bda6-5, Tilburg University, School of Economics and Management.
    17. Henrik Sternberg & Isidro Linan & Günter Prockl & Andreas Norrman, 2022. "Tragedy of the facilitated commons: A multiple‐case study of failure in systematic horizontal logistics collaboration," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(4), pages 30-57, October.
    18. Mancini, Simona & Gansterer, Margaretha & Hartl, Richard F., 2021. "The collaborative consistent vehicle routing problem with workload balance," European Journal of Operational Research, Elsevier, vol. 293(3), pages 955-965.
    19. Manuel Sanchez & Lorena Pradenas & Jean-Christophe Deschamps & Victor Parada, 2016. "Reducing the carbon footprint in a vehicle routing problem by pooling resources from different companies," Netnomics, Springer, vol. 17(1), pages 29-45, July.
    20. Eirinakis, Pavlos & Mourtos, Ioannis & Zampou, Eleni, 2022. "Random Serial Dictatorship for horizontal collaboration in logistics," Omega, Elsevier, vol. 111(C).

    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:gam:jsusta:v:12:y:2020:i:16:p:6627-:d:399776. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.