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Logistic Efficiency Through Horizontal Cooperation: The Case of Flemish Road Transportation Companies

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  • Cruijssen, F.C.A.M.
  • Dullaert, W.
  • Joro, T.

    (Tilburg University, Center for Economic Research)

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    Abstract

    This paper describes a practical application of Data Envelopment Analysis (DEA) to the Flemish road transportation sector.The efficiency of 82 road transportation companies responding to a large-scale survey focused on horizontal cooperation is evaluated, based on two inputs and two outputs.Various DEA models are used to identify differences between subgroups of respondents.The results demonstrate that, in general, Flemish road transportation companies operate at unacceptably low efficiency levels.Given the findings that the median company is operating on too small a scale one apparent remedy would be a dramatic increase in market concentration through mergers and acquisitions

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    Bibliographic Info

    Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2006-14.

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    Date of creation: 2006
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    Handle: RePEc:dgr:kubcen:200614

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    Web page: http://center.uvt.nl

    Related research

    Keywords: horizontal cooperation; road transportaion companies; data envelopment analysis;

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    1. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    2. Adler, Nicole & Golany, Boaz, 2001. "Evaluation of deregulated airline networks using data envelopment analysis combined with principal component analysis with an application to Western Europe," European Journal of Operational Research, Elsevier, vol. 132(2), pages 260-273, July.
    3. Rajiv D. Banker, 1993. "Maximum Likelihood, Consistency and Data Envelopment Analysis: A Statistical Foundation," Management Science, INFORMS, vol. 39(10), pages 1265-1273, October.
    4. Chiou, Yu-Chiun & Chen, Yen-Heng, 2006. "Route-based performance evaluation of Taiwanese domestic airlines using data envelopment analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 42(2), pages 116-127, March.
    5. Johnes, Jill, 2006. "Data envelopment analysis and its application to the measurement of efficiency in higher education," Economics of Education Review, Elsevier, vol. 25(3), pages 273-288, June.
    6. Carlos Pestana Barros & Manolis Athanassiou, 2004. "Efficiency in European Seaports with DEA: Evidence from Greece and Portugal," Maritime Economics and Logistics, Palgrave Macmillan, vol. 6(2), pages 122-140, June.
    7. Banker, Rajiv D., 1984. "Estimating most productive scale size using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 17(1), pages 35-44, July.
    8. Odeck, James, 2006. "Identifying traffic safety best practice: an application of DEA and Malmquist indices," Omega, Elsevier, vol. 34(1), pages 28-40, January.
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    Cited by:
    1. Cruijssen, F.C.A.M. & Braysy, O. & Dullaert, W. & Fleuren, H.A. & Salomon, M., 2006. "Joint Route Planning under Varying Market Conditions," Discussion Paper 2006-49, Tilburg University, Center for Economic Research.

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