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Bringing economies of integration into the costing of groupage freight

Author

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  • Christian Brabänder

    (Sennebogen Maschinenfabrik)

  • Maximilian Braun

    (University of Regensburg)

Abstract

The purpose of this paper is to develop a novel calculation scheme for the costs of distribution per shipment according to a cost-by-cause principle. We propose to estimate the full costs of distribution routes excluding and including a new consignor. Then, we estimate the marginal costs per shipment and per consignor. The contributions of this paper are (1) a comprehensive list of drivers of Economies of Integration and (2) a calculation scheme, how to estimate true marginal cost of new consignors. Practitioners may deploy the method and insights of this paper for tariff design, negotiations, consignor acquisition, and also demarketing.

Suggested Citation

  • Christian Brabänder & Maximilian Braun, 2020. "Bringing economies of integration into the costing of groupage freight," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(6), pages 366-385, December.
    • Handle: RePEc:pal:jorapm:v:19:y:2020:i:6:d:10.1057_s41272-020-00237-3
    DOI: 10.1057/s41272-020-00237-3
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    References listed on IDEAS

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    Cited by:

    1. Aldona Jarašūnienė & Kristina Čižiūnienė & Artūras Petraška, 2022. "Sustainability Promotion by Digitalisation to Ensure the Quality of Less-Than-Truck Load Shipping," Sustainability, MDPI, vol. 14(19), pages 1-20, October.

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