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Modelling individual preferences of goods receivers for a Receiver-led delivery consolidation service

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  • Aljohani, Khalid
  • Thompson, Russell G.

Abstract

There have been various initiatives to consolidate freight deliveries. Researchers have been primarily concerned with assessing the impact upon freight carriers. This study addresses a subject that has received limited attention: Receiver-led delivery consolidation (RLC) policy. The study aims to characterise freight receivers’ preferences for a RLC service and delve more deeply into the most preferred RLC policy variables that could induce receivers’ propensity towards choosing a RLC service. This study estimates behavioural responses of businesses in Melbourne’s CBD, Australia using a mixed logit model a latent-class logit mode with respect to receivers’ preferences for the RLC service as well as quantifying the willingness to pay (WTP) for a RLC delivery service. The modelling results show that the time-window of consolidated delivery and availability of relevant value-added services significantly influence receivers’ preferences. The study findings reveal high preferences for versions of a RLC service that maintain current delivery practices. The results of the WTP calculation suggest that while there might be a net benefit for receivers to pay for services, delivery characteristics of receivers, such as their sub-industry type, highly influence WTP. Future freight consolidation should be optimised by sub-industry and should accommodate as closely as possible the current delivery practices that businesses use. Accordingly, this study proposes suitable configurations of a RLC service based on the individual-level preferences of the most willing sub-industries.

Suggested Citation

  • Aljohani, Khalid & Thompson, Russell G., 2021. "Modelling individual preferences of goods receivers for a Receiver-led delivery consolidation service," Transportation Research Part A: Policy and Practice, Elsevier, vol. 150(C), pages 74-94.
    • Handle: RePEc:eee:transa:v:150:y:2021:i:c:p:74-94
    DOI: 10.1016/j.tra.2021.06.004
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