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Cost Modeling for Pickup and Delivery Outsourcing in CEP Operations: A Multidimensional Approach

Author

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  • Ermin Muharemović

    (Faculty of Traffic and Communications, University of Sarajevo, 71000 Sarajevo, Bosnia and Herzegovina)

  • Amel Kosovac

    (Faculty of Traffic and Communications, University of Sarajevo, 71000 Sarajevo, Bosnia and Herzegovina)

  • Muhamed Begović

    (Faculty of Traffic and Communications, University of Sarajevo, 71000 Sarajevo, Bosnia and Herzegovina)

  • Snežana Tadić

    (Faculty of Transport and Traffic Engineering, University of Belgrade, 11000 Beograd, Serbia)

  • Mladen Krstić

    (Faculty of Transport and Traffic Engineering, University of Belgrade, 11000 Beograd, Serbia)

Abstract

Background : The growth of parcel volumes in urban areas, largely driven by e-commerce, has increased the complexity of pickup and delivery operations. To meet demands for cost efficiency, flexibility, and sustainability, CEP (Courier, Express, and Parcel) operators increasingly outsource segments of their last-mile networks. Methods : This study proposes a novel multidimensional cost model for outsourcing, integrating five key variables: transport unit type (parcel/pallet), service phase (pickup/delivery), vehicle category, powertrain type, and delivery point type. The model applies correction coefficients based on internal operational costs, further adjusted for location and service quality using a bonus/malus mechanism. Results : Each cost component is calculated independently, enabling full transparency and route-level cost tracking. A real-world case study was conducted using operational data from a CEP operator in Bosnia and Herzegovina. The model demonstrated improved accuracy and fairness in cost allocation, with measurable savings of up to 7% compared to existing fixed-price models. Conclusions : The proposed model supports data-driven outsourcing decisions, allows tailored cost structuring based on operational realities, and aligns with sustainable last-mile delivery strategies. It offers a scalable and adaptable tool for CEP operators seeking to enhance cost control and service efficiency in complex urban environments.

Suggested Citation

  • Ermin Muharemović & Amel Kosovac & Muhamed Begović & Snežana Tadić & Mladen Krstić, 2025. "Cost Modeling for Pickup and Delivery Outsourcing in CEP Operations: A Multidimensional Approach," Logistics, MDPI, vol. 9(3), pages 1-26, July.
  • Handle: RePEc:gam:jlogis:v:9:y:2025:i:3:p:96-:d:1703969
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