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The Logistics Service Mode Selection for Last Mile Delivery Considering Delivery Service Cost and Capability

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  • Feng Li

    (Department of Information Management and Decision Sciences, School of Business Administration, Northeastern University, Shenyang 110169, China)

  • Zhi-Ping Fan

    (Department of Information Management and Decision Sciences, School of Business Administration, Northeastern University, Shenyang 110169, China
    Key Laboratory of Data Analytics and Optimization for Smart Industry (Northeastern University), Ministry of Education, Shenyang 110167, China)

  • Bing-Bing Cao

    (School of Management, Guangzhou University, Guangzhou 510006, China)

  • Hai-Mei Lv

    (Department of Information Management and Decision Sciences, School of Business Administration, Northeastern University, Shenyang 110169, China)

Abstract

The last mile delivery service is an important part in the logistics service process of express enterprises. How to select a suitable logistics service mode for last mile delivery to maximize the delivery service capacity and minimize delivery service cost is a noteworthy problem, but studies on this problem are still lacking. In this paper, we first analyze three potential logistics service modes for last mile delivery, i.e., self-run mode, outsourcing mode, and alliance mode, and then propose a selection framework of logistics service mode for last mile delivery based on a two-dimensional matrix decision model according to the two dimensions of delivery service cost advantage and delivery service capability advantage. Next, we give the calculation formulas for the delivery service cost and delivery service capability. Furthermore, we propose a method for logistics service mode selection for last mile delivery according to delivery service costs and delivery service capabilities of three potential logistics service mode. Finally, we show the feasibility and effectiveness of the proposed method by a case analysis.

Suggested Citation

  • Feng Li & Zhi-Ping Fan & Bing-Bing Cao & Hai-Mei Lv, 2020. "The Logistics Service Mode Selection for Last Mile Delivery Considering Delivery Service Cost and Capability," Sustainability, MDPI, vol. 12(19), pages 1-17, September.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:19:p:8080-:d:422120
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    References listed on IDEAS

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    Cited by:

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    2. Tomáš Settey & Jozef Gnap & Dominika Beňová & Michal Pavličko & Oľga Blažeková, 2021. "The Growth of E-Commerce Due to COVID-19 and the Need for Urban Logistics Centers Using Electric Vehicles: Bratislava Case Study," Sustainability, MDPI, vol. 13(10), pages 1-20, May.
    3. Feng Li & Zhi-Ping Fan & Bing-Bing Cao & Xin Li, 2020. "Logistics Service Mode Selection for Last Mile Delivery: An Analysis Method Considering Customer Utility and Delivery Service Cost," Sustainability, MDPI, vol. 13(1), pages 1-22, December.

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