Efficient supply chains through flexible horizontal collaboration
Recently, a trend towards horizontal collaboration in the supply chain has been gaining ground. Collaborative supply chains promise to improve sustainability and reduce transportation costs at the same time. This paper examines the possibility of collaboration and its implementation through a description of the current situation and a case study of three large companies in Belgium who have expressed their willingness to collaborate. As collaboration assumes a long-term relationship that needs to be built, this paper investigates the advantages of moving beyond mere bundling of logistics streams and assumes that partners are willing to explore further optimization opportunities that arise from collaboration. Most notably, this paper evaluates the effects of increased flexible with respect to delivery dates, as well as allowing large orders to be split into several deliveries. The case study developed in this paper shows that a decrease in distribution costs of 25.83% can be achieved. Distributing these gains to the partners by using the recommended Shapley value, the individual gains range from 19.01% to 37.56%. By adopting a flexible attitude with respect to delivery dates and order splitting, the partners in the coalition can further increase their individual gains, as well as the total coalition gain. Interestingly, the Shapley value is found to encourage companies to relinquish a rigid attitude with respect to delivery dates and order splitting, by allocating a larger share of the gains to flexible companies.
|Date of creation:||Mar 2012|
|Contact details of provider:|| Postal: Prinsstraat 13, B-2000 Antwerpen|
Web page: https://www.uantwerp.be/en/faculties/applied-economic-sciences/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Li, Suhong & Ragu-Nathan, Bhanu & Ragu-Nathan, T.S. & Subba Rao, S., 2006. "The impact of supply chain management practices on competitive advantage and organizational performance," Omega, Elsevier, vol. 34(2), pages 107-124, April.
- Cruijssen, F.C.A.M. & Salomon, M., 2004. "Empirical Study : Order Sharing Between Transportation Companies may Result in Cost Reductions Between 5 to 15 Percent," Discussion Paper 2004-80, Tilburg University, Center for Economic Research.
- Adler, Nicole, 2001. "Competition in a deregulated air transportation market," European Journal of Operational Research, Elsevier, vol. 129(2), pages 337-345, March.
- A. van den Nouweland & P. Borm & W. van Golstein Brouwers & R. Groot Bruinderink & S. Tijs, 1996.
"A Game Theoretic Approach to Problems in Telecommunication,"
INFORMS, vol. 42(2), pages 294-303, February.
- van den Nouweland, A. & Borm, P. & van Golstein, W. & Bruinderink, R.G. & Tijs, S., 1994. "A Game Theoretic Approach to Problems in Telecommunication," Papers 9407, Tilburg - Center for Economic Research.
- van den Nouweland, C.G.A.M. & Borm, P.E.M. & van Golstein Brouwers, W. & Groot Bruinderink, R. & Tijs, S.H., 1996. "A game theoretic approach to problems in telecommunication," Other publications TiSEM a3b30529-fe17-484c-8eab-7, Tilburg University, School of Economics and Management.
- Maloni, Michael J. & Benton, W.C., 1997. "Supply chain partnerships: Opportunities for operations research," European Journal of Operational Research, Elsevier, vol. 101(3), pages 419-429, September.
- Hageback, Charlotte & Segerstedt, Anders, 2004. "The need for co-distribution in rural areas--a study of Pajala in Sweden," International Journal of Production Economics, Elsevier, vol. 89(2), pages 153-163, May.
- Frisk, M. & Göthe-Lundgren, M. & Jörnsten, K. & Rönnqvist, M., 2010.
"Cost allocation in collaborative forest transportation,"
European Journal of Operational Research,
Elsevier, vol. 205(2), pages 448-458, September.
- Frisk, Mikael & Göthe-Lundgren, Maud & Jörnsten, Kurt & Rönnqvist, Mikael, 2006. "Cost allocation in collaborative forest transportation," Discussion Papers 2006/15, Department of Business and Management Science, Norwegian School of Economics.
- Gérard P. Cachon & Martin A. Lariviere, 1999. "Capacity Allocation Using Past Sales: When to Turn-and-Earn," Management Science, INFORMS, vol. 45(5), pages 685-703, May.
- E. Loehman & A. Whinston, 1974. "An Axiomatic Approach to Cost Allocation for Public Investment," Public Finance Review, SAGE Publishing, vol. 2(2), pages 236-250, April.
When requesting a correction, please mention this item's handle: RePEc:ant:wpaper:2012007. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joeri Nys)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.